Inheritance tax on investments

mkholland

Hello,
Not sure if this is the best place to post - I couldn't see a more appropriate section. Anyway I will keep it short.
If you are not resident in the UK, HMRC website says this:
The estate doesn’t have to pay Inheritance Tax on some assets known as ‘excluded assets’. They include: holdings in authorised unit trusts and open-ended investment companies (OEICs)

What I would like to know is what is an 'authorised' unit trust or OEIC (as opposed to an 'unauthorised')?
Does this exclusion include unit trusts and OEICs that are held within an ISA, SIPP, and general 'dealing account' type holdings?

I have tried the HMRC helpline and they will not advise on 'hypothetical or tax planning' questions. So I could not get any clarification from them.

Thank you!

Eco_Miser

My guess is that any unit trusts or OEICs that come from 'normal' investment mangers will be authorised. The unauthorised ones will have been set up for 'aggressive tax avoidance', or even tax evasion, or as a scam.

ICBW

mkholland

Eco_Miser wrote: »

My guess is that any unit trusts or OEICs that come from 'normal' investment mangers will be authorised. The unauthorised ones will have been set up for 'aggressive tax avoidance', or even tax evasion, or as a scam.

ICBW

Yes I would assume the same, I wondered whether they meant authorised as in authorised by the FCA. As you say that covers all the 'normal' funds.

As for the other question, does the inheritance tax exemption apply to these funds when they are held in any/all of: ISA, SIPP, or normal dealing/trading account? Hopefully someone may know the answer...

xylophone

http://www.professionaladviser.com/ifaonline/feature/2244992/all-you-need-to-know-about-iht-and-excluded-property

http://lexicon.ft.com/Term?term=authorised-fund

seem relevant.

mkholland

That explains it perfectly. Thank you.