IHTM04272 - Foreign settled property: when the settlement was made
Where the legislation refers to the settlor’s domicileÌý(IHTM13000) ‘at the time when property first became comprised in the settlement’.ÌýYou should proceedÌýon the basis that, for any given item of property (IHTM04030) held in a settlement, the settlement was made when that property was put in the settlement. Refer any case where this view is challenged to Technical.Ìý
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ExampleÌý
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Sabina, when domiciledÌýin Spain, transfers a house in Spain into a new settlement. Later she acquiresÌýaÌýUKÌýdomicileÌýand then adds some Australian property to the settlement.ÌýÌýShe died on 3 August 2022, so her domicile at the time the property became comprisedÌýin the settlement is relevant.Ìý
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The Spanish property is excluded property because of Sabina’s non-UK domicileÌýwhen she settled that property. However, the Australian property is not excluded property as Sabina had a UK domicileÌýwhen she added that property to the settlement.Ìý