Pre-owned land

In order for the POAT to apply to the individual for any tax year, he must be resident in the UK during that year, see the Residence guidance note.

Where the individual is UK resident but is domiciled outside the UK, the POAT applies only if the asset is situated in the UK. For this purpose, a person is domiciled in the UK at any time if he would be domiciled, or treated as domiciled, in the UK under IHT legislation. See the Domicile guidance note and IHTA 1984, s 267 (subscription sensitive) for circumstances in which a person can be treated as domiciled in the UK.

If the individual has at any time been domiciled outside the UK, no regard is to be had to any property which is in a trust and situated outside the UK, so long as the settlor was not UK domiciled at the time he made the settlement.

See Simon's Taxes I3.740 (subscription sensitive).

A POAT charge arises in relation to land where an individual (the chargeable person):

• •occupies land (see below), whether alone or together with others, and
• •either the disposal condition or the contribution condition is met

FA 2004, Sch 15, para 3(1)

The disposal condition is met where: