Introduction Details of the Section
2.Subsection (2) adds a new subsection (5) to section 267 of IHTA. To apply section 267 it is necessary to determine the domicile status of an individual. New subsection (5) provides that any such determination is to be made without regard to new sections 267ZA and 267ZB (inserted by subsection (3)).
3.New subsections 267ZA(1) to 267ZA(4) provide that a person, or the personal representative for the person, may elect to be treated as domiciled in the UK for the purposes of Inheritance Tax (IHT) if they meet the required conditions.
4.New subsection 267ZA(5) specifies that the election in subsection (1) does not affect a person’s domicile for the purpose of Government securities free of tax while in foreign ownership and certain other types of savings.
5.New subsection 267ZA(6) provides that an election is to be ignored when interpreting or applying Estate Duty Conventions and Double Taxation Agreements which determine the domicile of an individual.
6.New subsection 267ZA(7) explains that for the purposes of subsection 267ZA(6)(b), a qualifying double taxation relief arrangement is an arrangement which was made before this section comes into force and is specified under section 158 in an Order in Council but does not include arrangements which were subsequently specified by way of amendment to an existing Order in Council following the coming into force of the subsection.
7.New subsection 267ZA(8) provides that in determining whether or not a person is qualified to make an election, their domicile status is to be determined without regard to any deemed domicile treatment which occurs by virtue of section 267 IHTA.
8.New subsection 267ZB lays out how an election is made; the time period in which it must be made; that on the date specified in the notice the elector must have been married or in a civil partnership with their UK domiciled spouse or civil partner; that an election made under the new provisions cannot be revoked; and the circumstances under which an election will cease to have effect.