usufruct EU property

[riccardob]

Hi,

Does anyone know how does HMRC treat the ususfruct of a uk domiciled deceased who owed a property in the EU?

Under the EU country's jurisdiction, the usufruct was worth X and the remainder of the property Y. Does HMRC still calculate
IHT on X + Y or just X?

Thanks

[AGoodman]

I believe their general view remains that a usufruct is a life interest trust so the whole value would come into tax:

http://webarchive.nationalarchives.gov. ... letter.htm

(later confirmed in Sep 2015).

There are arguments to the contrary but I have no experience of ever running them.

[riccardob]

do you mean the usufruct value or the value of the whole property?

[AGoodman]

Value of the whole property.