IHTA84/S6 (1) - ‘Unsettled’ is a convenient
description of property which is owned absolutely, and not held in
a "settlement". Unsettled property which, at the time of its
transfer, is situated (
IHTM27071) abroad is excluded property
if the individual/transferor who owns it beneficially (
IHTM04031) is also domiciled (
IHTM13000) outside the UK at that time.
Conversely, all unsettled property beneficially owned by a
UK domiciliary is within the scope of IHT, regardless of the
locality of the property. If you have any doubt about whether the
property concerned is "unsettled" or "settled" you should consult
your Team Leader who may refer the matter to a TG.
In any case where the transferor is claimed to have been
domiciled abroad at the time of the transfer, you must check the
case papers to ensure that they contain appropriate information
(e.g. a form IHT405).
If you do not have the information on file you must obtain
it and once the information is available, you must refer the
question of domicile to TG or your Team Leader (Scotland) with an
appropriate memo.
