IHTM46032 - More detailed guidance: residence outside the UK

There is no requirement that the residence (dwelling-house) has to听be in the UK听but it does have to be within the scope of IHT听and it has to听be included in a person鈥檚 estate. Whether the residence is within the scope of IHT may depend on:听听

  • the听long-term UK residence (IHTM47000) status听of the deceased (deaths on or after 6 Apil 2025) or the domicile status of the deceased (deaths before 6 April 2025) and听听

  • the location of the property.听

Death on or after 6 April 2025听

For an individual who was a long-term UK resident at their death, and so听subject to IHT on their worldwide assets,听it does not matter where the residence (dwelling-house) which is left to direct descendants is located.听听For an individual who is not long-term UK resident at their death, and so听subject to IHT only on their assets in the UK, the residence which is to be left to direct descendants must be situated in the UK in order to be within their estate for IHT purposes and hence to be able to qualify for the RNRB.听

Death before 6 April 2025听

For UK domiciled individuals, who are subject to IHT on their worldwide assets, it does not matter where the residence (dwelling-house) which is left to direct descendants is located. For non-UK domiciled individuals, who are subject to IHT only on their assets in the UK, the residence which is to be left to direct descendants must be situated in the UK in order to听be within their estate for IHT purposes and hence to be able to qualify for the RNRB.听