IHTM04262 - Holdings in Open Ended Investment Companies (OEICs) and Authorised Unit Trusts (AUTs)

Holdings in Open Ended Investment Companies (OEICs) and Authorised Unit Trusts (AUTs) are excluded property (IHTM27211) if they are held by an individual who is not long-term UK resident (IHTM47000). 

Where the occasion of charge occurred on or after 16 October 2002 but before 6 April 2025 OEICs and AUTs were excluded property if they were held by an individual who was not domiciled (IHTM13000) in the UK.  

An Authorised Unit Trust is defined in IHTA84/S272 as ‘a scheme which is a unit trust scheme for the purposes of the Income Tax Acts (ITA07/S1007) and in the case of which an order under Financial Services and Markets Act 2000/S243 is in force’ 

Open Ended Investment Companies are defined in IHTA84/S272 as ‘an open-ended investment company within the meaning given by Financial Services and Markets Act 2000/S236 which is incorporated in the United Kingdom 

Where OEICs and AUTs are comprised in a settlement, they are excluded property at times when the settlor is not a long-term UK resident. 

If the settlor dies on or after 6 April 2025, OEICs and AUTs will be excluded property if the settlor was not a long-term UK resident at their death. 

If the settlor dies before 6 April 2025, OEICs and AUTs will be excluded property if they became comprised in a settlement at a time when the settlor was not domiciled (IHTM13000) in the UK. 

There is no exit charge where property comprised in a settlement ceases to be relevant property because it is invested in OEICs or AUTs IHTA84/S65(7A) 

Any case where the transfer concerns property held in a relevant property trust where: 

  • it is comprised in the trust when the settlor is  not long-term UK resident (on or after 6 April 2025) or became comprised in the trust when the settlor was domiciled outside the UK (before 6 April 2025), and 

  • the trust disposes of UK situs (IHTM27071) assets and also acquires AUTs / OEICs 

must be referred to Technical. 

There is further relevant guidance on foreign property, excluded from Inheritance Tax at IHTM27211.