IHTM04273 - Foreign settled property: the settlor's domicile
Foreign settled property is only excluded property (IHTM04251) where the settlor was domiciled (IHTM13000) outside the UK at the time when the property (IHTM04030) became comprised in the settlement. The domicile of the trustees (IHTM16050) and beneficiaries is not relevant. It follows that, as a general rule, property settled by a UK domiciliary is not excluded property and is therefore within the scope of Inheritance Tax regardless of the locality (IHTM27071) of the property. This is so even if any person entitled to a qualifying interest in possession (IIP) (IHTM16062) in the property, who is beneficially entitled (IHTM04031) to the property, IHTA84/S49 (1) and S49 (1A) is domiciled abroad.