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Deceased was deemed UK domiciled and foreign properties were not excluded property

By Arthur Weller, December 2024

A deceased individual was domiciled in the UK and foreign properties formed part of his estate and were not excluded property for inheritance tax purposes. 

The deceased (MF) was born in Malta on 18 November 1957. He died on 25 April 2015. HM Revenue and Customs (HMRC) subsequently issued an inheritance tax (IHT) determination to the appellant (MF’s sister and personal representative), stating that in relation to jointly owned foreign properties in which the deceased held a share at the time of his death, the properties were not held by any form of trust settled by a person domiciled outside the UK, and that those properties formed part of MF’s estate for IHT purposes. The determination also found that the 1/6 undivided share of properties located in Malta that were inherited by MF together with his siblings from his parents were not excluded property (within IHTA 1984, ss 6 or 48). The appellant appealed. 

The appellant’s

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