IHTM11116 - General outline: the jurisdiction condition

From 15 March 2023 (or 1 April 2024) transfers of value are only exempt for Inheritance Tax (IHT) purposes where they are made to UK charities. Prior to these changes, the jurisdiction condition was wider and meant that transfers of value made to certain bodies outside of the UK could benefit from the exemption. From 15 March 2023 (or 1 April 2024) only transfers made to bodies subject to the control of a relevant UK court can benefit from the exemption under this criteria.

Before 15 March 2023, an eligible organisation must have been located in a member State of the European Union (EU) or other territory specified by HMRC. Iceland and Norway were specified with effect from 20 August 2010 and Liechtenstein was specified with effect from 31 July 2014.

The organisation must also be subject to control by a court in the corresponding jurisdiction under that jurisdiction’s law. In the UK, this is the High Court, the Court of Session in Scotland or the High Court in Northern Ireland. In a territory outside the UK when relevant, this meant a court with a corresponding jurisdiction.