I9.330B Authorised unit trusts and open-ended investment companies—settled property
For the latest New Development, see ND.1847.
Where a holding in an authorised unit trust1 or a share in an open-ended investment company2 is comprised in a settlement and the settlor was, for the purposes of IHT, domiciled outside the UK at the time the settlement was made (or with effect from 22 July 2020 the time when the property became comprised in the settlement) that holding or share (but not a reversionary interest in it) is excluded property in relation to transfers of value or other events occurring after 15 October 20023.
The rule under which a holding in an authorised unit trust and a share in an open-ended investment company is excluded property if in either case the person beneficially entitled to it is an individual who is domiciled outside the UK (see I9.330A) is disapplied except in the case of a reversionary interest4. For the treatment of a reversionary interest, see I9.341.
Up to 22 July 2020 (the day on which FA 2020 was passed), the settlor's domicile at the time the settlement was made was fundamental in determining whether a holding in an authorised unit trust or a share in an open-ended investment company which is settled property is excluded property5. For charges on settled property on and after 22 July 2020, the test is amended so that the settlor's domicile at the time the property became comprised in the settlement is applicable. If the property became comprised