Country has it in intellect (7)
I believe the answer is:
britain
'country' is the definition.
(I know that Britain is a country)
'it in intellect' is the wordplay.
'in' means one lot of letters goes inside another.
'intellect' becomes 'brain' (brain is a kind of intellect).
'it' put within 'brain' is 'BRITAIN'.
'has' acts as a link.
(Other definitions for britain that I've seen before include "Country" , "Island north of France" , "See 10" , "UK's largest island" , "Largest UK island" .)