Section 157 Non-residents’ bank accounts.
United Kingdom
In determining for the purposes of this Act the value of the estate immediately before his death of a person to whom this section applies there shall be left out of account the balance on—
any qualifying foreign currency account of his, and
subject to subsection (3) below, any qualifying foreign currency account of the trustees of settled property in which he is beneficially entitled to an interest in possession.
Subsection (1)(b) above does not apply in relation to settled property F4if—
the trustees are resident in the United Kingdom immediately before the beneficiary’s death,
the settlor is alive and is a long-term UK resident immediately before the beneficiary’s death,
the settlor died on or after 6 April 2025 and was F5... a long-term UK resident immediately before they died, or
the settlor died before 6 April 2025 and was F6... domiciled in the United Kingdom when the property became comprised in the settlement.
This section is subject to paragraph 5 of Schedule A1 (non-excluded overseas property).
For the purposes of this section—
the question whether a person is resident F8... in the United Kingdom shall, subject to paragraph (b) below, be determined as for the purposes of income tax; but
the trustees of a settlement shall be regarded as not resident F9... in the United Kingdom unless the general administration of the settlement is ordinarily carried on in the United Kingdom and the trustees or a majority of them (and, where there is more than one class of trustees, a majority of each class) are resident ... there.
Annotations
Textual amendments
- F1
S. 157(2) substituted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 46 para. 118(2) (with Sch. 46 para. 118(5))
- F2
Words in s. 157(2) omitted (6.4.2025) by virtue of Finance Act 2025 (c. 8), Sch. 13 paras. 21(2)(a), 45(1)
- F3
Words in s. 157(2) inserted (6.4.2025) by Finance Act 2025 (c. 8), Sch. 13 paras. 21(2)(b), 45(1)
- F4
S. 157(3)(a)-(d) and word substituted for words (6.4.2025) by Finance Act 2025 (c. 8), Sch. 13 paras. 21(3), 45(1)
- F5
Word in s. 157(3)(c) omitted (26.11.2025) by virtue of Finance Act 2026 (c. 11), s. 76(3)(5) (with s. 76(6))
- F6
Word in s. 157(3)(d) omitted (26.11.2025) by virtue of Finance Act 2026 (c. 11), s. 76(3)(5) (with s. 76(6))
- F7
S. 157(3A) inserted (with effect in accordance with Sch. 10 para. 9 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 10 para. 6
- F8
Words in s. 157(4)(a) omitted (17.7.2013) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 118(4)(a) (with Sch. 46 para. 118(5))
- F9
Words in s. 157(4)(b) omitted (17.7.2013) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 118(4)(b) (with Sch. 46 para. 118(5))
- F10
Words in s. 157(5) substituted (29.4.1996 with effect in relation to deaths occurring on or after 29.4.1996) by 1996 c. 8, s. 198, Sch. 37 para. 12(1)(3)
- F11
Words in s. 157(5) repealed (26.3.2001) by S.I. 2001/1149, art. 3(2), Sch. 2 (with art. 4(4))
- F12
S. 157(5)(b) and the preceding “and” repealed (29.4.1996 with effect as mentioned in Sch. 37 of the amending Act) by 1996 c. 8, s. 205, Sch. 41 Pt. VIII(2), note
- F13
S. 157(6) inserted (29.4.1996 with effect in relation to deaths occurring on or after 29.4.1996) by 1996 c. 8, s. 198, Sch. 37 para. 12(2)(3)
- F14
Words in s. 157(6) substituted (with effect as mentioned in s. 1034 of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 269 (with transitional provisions and savings in Sch. 2)
Notes on the whole Act
Textual amendments
- F1
By Finance Act 1986 s. 100(1), on and after 25 July 1986 the Capital Transfer Tax Act 1984 may be cited as the Inheritance Tax Act 1984.