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Unilateral relief for IHT

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Unilateral relief for IHT

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
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Unilateral relief may be available as a credit against UK inheritance tax (IHT) where a tax of a character similar to IHT has been imposed on property in an overseas territory.

Unilateral relief will apply in relation to territories to which double tax relief does not apply.

Where double tax relief can also apply, the provision that provides the greatest relief can be claimed. See the Double tax relief for IHT guidance note.

Some foreign jurisdictions have their own version of unilateral relief, such as Germany. These may be limited to some extent (in the same way as UK unilateral relief).

Conditions for relief

For the relief to apply, tax must be imposed in a territory outside the UK and be attributable to the value of any property, and:

  1. •

    the tax must be of a character similar to UK IHT or be chargeable on or by reference to death or lifetime gifts

  2. •

    the UK IHT chargeable on the same occurrence must be attributable to the value of the same property

The

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