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Excluded property
Practical Law UK Glossary 4-382-5624 (Approx. 4 pages)
Glossary
Excluded property
For inheritance tax (IHT) purposes, certain types of property are excluded from IHT. It is a technical term and includes:
- Property situated outside the UK, where the beneficial owner is domiciled outside the UK for IHT purposes (section 6(1), Inheritance Act 1984 (IHTA 1984).
- British government securities, where the beneficial owner is not domiciled and not resident in the UK (or, for securities issued before 6 April 2013, not domiciled and not ordinarily resident in the UK) (section 6(2), IHTA 1984, section 22, Finance (No 2) Act 1931 and paragraph 114, Schedule 46, Finance Act 2013).
- A reversionary interest (section 48, IHTA 1984).
- War savings certificates and other national savings products, where the beneficial owner is domiciled in the Channel Islands or the Isle of Man (section 6(3), IHTA 1984).
For further details, see Practice note, Inheritance tax: overview: Excluded property. See also HMRC's Inheritance Tax Manual beginning at page IHTM04251 - Excluded property: introduction and at page IHTM27211 - Foreign property: Property excluded from Inheritance tax: introduction.