IHTM06023 - Rules about excepted estates: what is not an excepted estate

There are instances when an estate cannot qualify as an excepted estate, regardless of the value. These are:

Where the deceased held an interest in possession (IHTM16060) in more than one item of settled property (IHTM16041).

For deaths from 1 September 2006 to 5 April 2011, where a charge arises under IHTA84/S151A-C (Inheritance Tax (IHT) charge on an alternatively secured pension fund).

Where, on or after 18 March 1986, the deceased made a gift with reservation of benefit and either:

  • the reservation still subsists at the death (IHTM04072), or
  • the property ceased to be subject to the reservation within the seven years before the death - unless this constituted a specified transfer (IHTM06018).

Where the deceased has elected that property should be treated as part of their estate for IHT rather than pay a pre-owned asset charge,

Where the deceased is regarded as deemed domiciled (IHTM13024) in the UK under the provisions of IHTA84/S267.