Emma Chamberlain OBE (Pump Court Tax Chambers) examines some important amendments to the excluded property provisions governing settlements.
The Finance Bill 2020 contains relatively few inheritance tax changes. However clauses 72 and 73 introduce some important amendments to the excluded property provisions governing settlements and in particular to IHTA 1984 s 48(3) and ss 80–82.
Background
Generally non-UK assets held in a trust established by a foreign domiciled settlor qualify as excluded property. Excluded property is not ignored for all IHT purposes but importantly it is not subject to the relevant property regime nor charged under the reservation of benefit rules. Nor is the foreign domiciled settlor liable to an entry charge when settling such property into trust. The foreign settled property remains free of inheritance tax charges even if the settlor later becomes domiciled or deemed domiciled in the UK (IHTA 1984 s 48(3))....
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Emma Chamberlain OBE (Pump Court Tax Chambers) examines some important amendments to the excluded property provisions governing settlements.
The Finance Bill 2020 contains relatively few inheritance tax changes. However clauses 72 and 73 introduce some important amendments to the excluded property provisions governing settlements and in particular to IHTA 1984 s 48(3) and ss 80–82.
Background
Generally non-UK assets held in a trust established by a foreign domiciled settlor qualify as excluded property. Excluded property is not ignored for all IHT purposes but importantly it is not subject to the relevant property regime nor charged under the reservation of benefit rules. Nor is the foreign domiciled settlor liable to an entry charge when settling such property into trust. The foreign settled property remains free of inheritance tax charges even if the settlor later becomes domiciled or deemed domiciled in the UK (IHTA 1984 s 48(3))....
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