Inheritance Tax Act 1984 section 6

Excluded property

Section 6 defines the categories of property that are treated as "excluded property" and therefore fall outside the scope of inheritance tax.

• Property situated outside the UK is excluded property where the beneficial owner is an individual domiciled outside the UK; this also extends to holdings in authorised unit trusts and shares in open-ended investment companies owned by non-UK domiciled individuals.
• Certain decorations and awards — such as military medals, gallantry awards, emergency service honours, and Crown awards for public service — are excluded property, provided they have never been sold or otherwise disposed of for money or money's worth.
• Government securities issued by the Treasury with a condition of tax exemption for specified classes of beneficial owner are excluded property while held by a person meeting that condition; property of visiting forces and similar persons under section 155 is also excluded.
• The excluded property treatment is subject to Schedule A1, which can bring back into charge overseas property whose value is attributable to UK residential property.