Inheritance Tax Act 1984 section 82

Excluded property: property to which section 81 applies (old cases)

Section 82 sets out the conditions under which settled property that has moved between settlements can qualify as excluded property for inheritance tax purposes, specifically in older cases predating the rules in section 82A.

• Property that has moved between settlements may qualify as excluded property only if both Condition A and Condition B are met, subject to limited exceptions for conditionally exempt occasions and certain ten-yearly charge exemptions.
• Condition A requires that the settlor of the second settlement (the one into which the property moved) was not domiciled in the UK when that settlement was made.
• Condition B requires that the settlor of neither the first nor the second settlement was a formerly domiciled resident for the tax year in which the relevant time falls.
• Where trustees reinvest into exempt government securities, no exit charge arises provided the settlor was not UK-domiciled when the settlement was made and the domicile conditions are satisfied.