Inheritance Tax Act 1984 section 267ZD

Further provision about elections under section 267ZC

Section 267ZD sets out the procedural rules for making an election under section 267ZC to be treated as a long-term UK resident for inheritance tax purposes, including the form of the election, the dates it can take effect from, time limits for death elections, consequences for transfers arising in the gap between the effective date and the date of election, and the circumstances in which an election lapses.

• The election must be made in writing to HMRC, specifying an effective date after 5 April 2025 that falls within the 7 years ending with the date of election (for lifetime elections) or the date of death (for death elections), and on which both the marriage or civil partnership and the other spouse's long-term UK resident status existed.
• A death election must be made within 2 years of the date of death, unless HMRC allow a longer period in a particular case.
• Where the election creates a transfer of value during the gap period between its effective date and the date it is actually made, extended deadlines apply for delivering accounts and the rules on tax payment and interest treat the transfer as made when the election is made.
• The election is irrevocable, but a lifetime election automatically lapses if the person who made it is not resident in the United Kingdom for 10 successive tax years beginning after the election was made.