In addition to beneficially owning (
IHTM04031) a qualifying FOTRA gilt, (
IHTM04291) the transferor, or in the
case of an interest in possession (IIP) (
IHTM16000) settlement, (
IHTM16000) the
beneficiary/beneficiaries concerned - must have been ordinary
resident outside the UK. ‘Residence’ and
‘ordinary residence’ are concepts that are better known
in the field of Income Tax than IHT.
In some cases the question of ordinary residence will already
have been considered and decided for Income Tax purposes.
Inspectors often use abbreviations – ‘R’ for
resident, ‘OR’ for ordinarily resident,
‘NR’ for not resident and ‘NOR’ for not
ordinarily resident. You should normally requisition the
person’s tax papers to ascertain what decision, if any, was
reached for Income Tax purposes. You should follow that decision
unless any information provided for IHT purposes points you in a
different direction. Refer to TG any case where you have any doubt
or difficulty, or if your decision (whether it is based on the view
adopted for Income Tax or not) is disputed by the taxpayer.
