IHTM27071 - Locality of assets (situs): introduction

Where an asset is legally situated is of importance to IHT because

• Locality outside the UK may cause the asset to be excluded property ( IHTM27211)
• Where an asset is determines whether or not the value of the assets receives relief under a Double Taxation Convention (DTC) ( IHTM27161).

IHTA84/S158 tells us to look first at the DTC that applies to see if it contains any situs rules. If the Convention does not contain situs rules we must follow the general law ruling on the assets in question.

Please note that DTCs drafted before 1975 usually contain detailed rules about situs those drafted post 1975 usually do not.

On the subject of locality of assets generally you must refer to the Leading British Death Duty Cases (pages 85 -112) and its supplements, where you will also find many of the cases referred to in this section.