Inheritance Tax Act 1984 section 82A

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

Section 82A sets out when property that has moved between settlements under section 81 qualifies as excluded property, and the conditions relating to the settlor's or transferor's domicile status that must be satisfied.

• When property ceases to be part of one settlement and becomes comprised in another settlement (without anyone becoming beneficially entitled to it), section 81 treats it as if it remains part of the original settlement.
• For such property to be treated as excluded property, a "non-domicile condition" must be met — meaning the person who caused the property to move (whether the original settlor or a beneficiary exercising a power) must not have been domiciled in the UK at the time of the transfer between settlements.
• If the person who caused the transfer has died before the property moves, and that death does not itself give rise to the transfer, the non-domicile condition is treated as satisfied.
• The rules apply not only to direct transfers but also to transfers brought about by assignments or exercises of powers of appointment, including cases where such actions only partly cause the movement of property.