Paragraph 11 IHTA 1984

Section 65 (exit charges etc) is amended as follows.

In subsection (7), for “section 48(3)(a) above” substitute “section 48ZA”.

In subsection (7A), for the words from “becomes excluded property” to the end, substitute “is invested in a holding in an authorised unit trust or a share in an open-ended investment company and thereby becomes excluded property by virtue of section 48ZA”.

Omit subsection (7B).

In subsection (7C), for “section 48(3)(a) above” substitute “section 48ZA”.

In subsection (8), for the words from the beginning to “subsection (8A))”, substitute “If the condition in subsection (8ZA) is met in relation to property comprised in a settlement”.

After subsection (8) insert—

“(8ZA)

The condition is that the settlor—

(a)

is alive and is not a long-term UK resident,

(b)

died on or after 6 April 2025 and was not a long-term UK resident immediately before they died, or

(c)

died before 6 April 2025 and was not domiciled in the United Kingdom when the property became comprised in the settlement.”

In subsection (8A), for “subsection (8)” substitute “subsection (8ZA)(c)”.