How to fill in schedule D31b
Published 6 April 2025
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This publication is available at https://www.gov.uk/government/publications/tell-hmrc-about-a-transferor-or-settlor-who-is-a-long-term-uk-resident-when-transitional-provisions-apply-d31b/how-to-fill-in-schedule-d31b
Who is a long-term UK resident
You can find out what long-term UK resident means.
A person may remain long-term UK resident for up to 10 years after leaving the UK.
What this means
Before 6 April 2025, a person’s domicile determined the Inheritance Tax treatment of foreign property transferred by them.
On or after the 6 April 2025, the long-term UK residency rules will be used to determine a person’s Inheritance Tax treatment.
When you should complete this form
You should fill in schedule D31b for chargeable events on or after 6 April 2025 if the transitional provisions apply.
The transitional provisions
Non-UK assets will not be subject to charge when the qualifying interest in possession comes to an end or the beneficiary dies if both of the following apply. The assets:
- are compromised in a qualifying interest in possession settlement immediately before 30 October 2024
- were classed as excluded property immediately before 30 October 2024
The assets must also be one of the following at the time of the chargeable event:
- non-UK property
- holdings in an Authorised Unit Trust
- holdings in Open Ended Investment Companies (OEICs)
There are exceptions to this for indirect interests in UK residential property.
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
What happens next
You should use the figures in this schedule to help you fill in the IHT100 series form.
You must send this schedule 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 contact the Inheritance Tax helpline if you need help completing this schedule.
You can read more detailed guidance on long-term UK residence in the Inheritance Tax manual.