Section 81B — Inheritance Tax Act 1984: Excluded property: property to which section 80 applies

Excluded property: property to which section 80 applies 81B 1 This section applies where—

a property is treated under section 80(1) as becoming comprised in a settlement, and b the property would, apart from this section, be excluded property by virtue of meeting the condition in any of subsections (2) to (4) of section 48ZA (excluded property: long-term residence and domicile tests).

2 For the purposes of this Chapter, except sections 78 and 79, the property is excluded property only if the condition in any of those subsections (whether or not the same one) is met by reference to the actual settlor and the actual settlement.

3 Section 65(8) (no exit charge where property invested in Treasury securities thereby becomes excluded property) applies in relation to the property only if the condition in section 65(8ZA) is met by reference to the actual settlor.

4 In this section, “ the actual settlor ” means the person who is the settlor of the property in relation to the settlement first mentioned in section 80(1); and “ the actual settlement ” means that settlement.

5 This section does not apply in relation to property that is a holding in an authorised unit trust or a share in an open-ended investment company if the occasion first referred to in section 80(1) occurred before 22 July 2020.