Incidence and burden ― overseas issues

Copyright © 2026 LexisNexis
Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Incidence and burden ― overseas issues

Copyright © 2026 LexisNexis
Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

Under UK law, the PRs are liable for the inheritance tax due on the chargeable transfer made on death. The tax is funded out of the estate assets under their control. The value of those assets, reduced by the tax payable, will be distributed to the beneficiaries according to the Will or the rules of intestacy. The PR will need to resolve the question of who ultimately bears the burden of the tax.

Burden of IHT

IHT on the estate of a deceased person - the general rule

Where a PR is liable to IHT on the estate of a deceased person, that IHT is treated as part of the general testamentary and administrative expenses of the estate (ie so that the burden of the tax falls on the residue of the estate) but only to the extent that:

  1. •

    the IHT is attributable to assets situated in the UK

  2. •

    those assets vest in the PR, and

  3. •

    those assets were not comprised in a settlement immediately before the death

IHTA

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
TAKE A FREE TRIAL NOW
Powered by Tolley+™
  • 14 Sep 2022 09:53

Home/ Tolley Tax Guidance/ Trusts and Inheritance Tax / Advising on offshore matters

Popular Articles

Trusts and Inheritance Tax

BPR ― trading and investment businesses

BPR ― trading and investment businessesIntroductionThe basic qualification rules for business property relief (BPR) are illustrated in the Flowchart ― trading or investment business for BPR purposes.For an overview of BPR, see the BPR overview guidance note.Relevant business propertyThe main

14 Jul 2020 15:36 | Produced by Tolley Read more Read more
Personal Tax

Married couple’s allowance

Married couple’s allowanceThe married couple’s allowance (MCA) is only available if one of the two spouses or civil partners was born before 6 April 1935. This means that one member of the couple must be at least 89 years old on 5 April 2024 to qualify for an allowance in the 2023/24 tax year.There

14 Jul 2020 12:13 | Produced by Tolley Read more Read more
Value Added Tax

Supplies of goods and services connected with education

Supplies of goods and services connected with educationThis guidance note provides an overview of the VAT treatment of goods and services provided in connection with supplies of education. This should be read in conjunction with the following guidance notes:•Supplies of education•Local authority

14 Jul 2020 13:44 | Produced by Tolley Read more Read more