Form

How to fill in schedule D31

Updated 12 August 2024

You should check the deemed domicile rules for Inheritance Tax. The Channel Islands and the Isle of Man are foreign countries under these rules.  

When you should complete this form

You should complete form D31 if the:

• transferor was domiciled outside of the UK at the date of the event
• settlor was domiciled outside of the UK on the date the settlement was set up or assets were added to it

If you’re telling us about a gift or other transfer of value reported on form IHT100a you should fill in the details of the transferor. For any other event you should fill in the details of the settlor.

If the transferor or settlor was not domiciled in the UK

Inheritance Tax is not due on foreign assets held in a trust if the transferor or settlor was domiciled outside of the UK when the assets were added to the trust. These assets are known as ‘excluded property’.

There are 2 main exceptions to this.

Interest in UK residential property

For charges on or after 6 April 2017 Inheritance Tax may be charged if the trustees own either of the following:

• an interest or shares in a foreign close company
• an interest in a foreign partnership

It will only be charged if the value of the interest or shares depends on the value of UK residential property. It also includes:

• loans due to the trustees that have been used to purchase, improve or maintain UK residential property — this includes trust assets used as security for a loan
• the profits from the disposal of any interest or shares for 2 years following the disposal

If the transferor or settlor is a formerly domiciled resident

Check deemed domicile rules for Inheritance Tax if you’re unsure if the transferor or settlor is a formerly domiciled resident. If they are, then none of the assets can be treated as ‘excluded property’.

What domicile of origin means

You get your domicile of origin at birth, but this is not always the same as your nationality or the country where you were born.

If your parents are married then your domicile of origin is wherever your father’s permanent home is at the time. If your parents are unmarried, it’s the country of your mother’s permanent home.

The same rules apply if you’re adopted but using the permanent homes of your adoptive parents.

Check if a double taxation convention or agreement applies

Check which counties the UK has a double taxation convention with.

If a domicile of dependence is claimed

A child cannot have an independent domicile until they’re 16 years old. Instead, their domicile is determined by someone else, such as a parent or guardian.

You must complete questions 5 to 16 if a domicile of dependence is claimed. You should complete these sections using the domicile of the parent or guardian.

You should usually use the domicile of the father. You may use the domicile of the mother if the parents are living apart and the child is living exclusively with the mother.

What happens next

You should use the figures in this schedule to help you fill in the IHT100 series form.

You must send this form alongside the completed IHT100 series form. Make sure you include copies of any documents we’ve asked for.

Get help 

You should contact the Inheritance Tax helpline if you need help completing this form.