IHT417 Form: Foreign Assets — Complete Guide 2026

When you need IHT417

Complete IHT417 (and submit it with the IHT400) if the deceased was UK-domiciled (or deemed domiciled) and owned any of the following outside the UK:

• property or land abroad (a holiday home, an inherited family home);
• foreign bank, building society or investment accounts;
• shares in foreign companies, or foreign-held funds;
• an overseas business or partnership interest.

Domicile is the deciding factor and is a complex area — if there is any doubt about whether the deceased was UK-domiciled, it is worth taking advice. See our guide to domicile and inheritance tax.

Valuing and reporting foreign assets

• Convert to sterling: value each asset in pounds using the exchange rate at the date of death.
• Deduct extra costs: you can deduct up to 5% of the value for the additional expense of administering or selling an asset abroad.
• Double taxation relief: if the same asset is taxed both abroad and in the UK, relief may be available to avoid being taxed twice.
• Moving money home: once the estate is settled, see transferring inheritance across borders.

Common mistakes

• Assuming foreign assets are outside UK inheritance tax — for a UK-domiciled person, worldwide assets are in scope.
• Confusing nationality or residence with domicile — it is domicile that decides whether IHT417 applies.
• Using the current exchange rate rather than the date-of-death rate.
• Overlooking double taxation relief and paying more UK tax than necessary.