IHTM47061 - Long-term UK residence test: Pre-owned assets tax
The pre-owned听asset (POA) charge听(IHTM44001)听is a charge to income tax on benefits received by a former owner of property.听 It applies to individuals who continue to receive benefits from certain assets (land, chattels, intangibles听in a settlor interested听迟谤耻蝉迟) that they once owned after 17 March 1986 but have since disposed of.听听
The POA charge (IHTM44001) applies to UK resident individuals.听 If you are long-term听UK resident听(IHTM47000), the POA charge applies to both UK and foreign property.听听听If you are not long-term UK resident the听charge only applies if the property is situated in the UK.听听听
Prior to 6 April 2025, if an individual was UK听resident,听but non-UK domiciled,听the charge did听not apply unless the property (land, chattels, intangibles in a settlor听interested trust)听was situated in the UK.听听
Property which is not subject to the gift with reservation (GWR)听provisions听(IHTM14301)听because it was excluded property comprised听within a settlement immediately听before 30 October 2024 (IHTM47022)听will also be disregarded for pre-owned听assets tax purposes.听
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