IHTM27001 - Foreign property: introduction

From 6 April 2025, for inheritance tax purposes, domicile is replaced by long-term UK residence and you can find details of these rules at IHTM47000. A transfer is chargeable to Inheritance Tax if the taxpayer is domiciled (IHTM13000) in the UK (to 5 April 2025) or is a long-term UK resident (from 6 April 2025) (IHTM47000) at the time of the transfer, or if the asset that is the subject of the transfer or charge is UK situs (IHTM27071) property. If you are in any doubt about the domicile/long-term UK residence of the taxpayer or the situs of the property concerned you should: 

  • refer the case to Service Technical Support (STS) - if you are in Service. 

  • consult IHTM13000 and the sections of these instructions about situs (IHTM27071) if you are in Compliance. 

The situs of property is decided by case law, statute and occasionally double taxation treaties or agreements. If you cannot find guidance on a particular type of asset in these instructions, or the situs of the property is disputed: 

  • refer the case to (STS), if you are in Service. 

  • ask for advice from Technical - if you are in Compliance. 

Certain assets are excluded from the charge to Inheritance Tax if the taxpayer was not domiciled in the UK or was not a long-term UK resident at the date of the transfer, regardless of where the assets are. Certain securities issued by international organisations (IHTM27141) are an example of this. If the taxpayer or agent claims that an asset is excluded and you cannot find guidance about that type of asset in these instructions: 

  • refer the case to STS, if you are in Service. 

  • Consult Technical, if you are in Compliance. 

You also need to be aware that the claim to Inheritance Tax can be affected by the way assets outside the UK devolve, even when the taxpayer is domiciled in the UK or is a long-term UK resident. For example, the foreign country may have different legal rules for property held jointly or on trust. Any problems with devolution should be referred to: 

  • STS, if you are in Service. 

  • Technical, if you are in Compliance.