Immovable property is situated where it is actually located, but
you must note that in the case of some types of interest either in
land or relating to land, different legal systems may take opposing
views as to whether they constitute movable or immovable property.
These differences are resolved (under Private International
Law, and also by specific provision in Double Taxation Conventions
where these apply) by the adoption of the view taken by the law of
the country in which the land itself is situated: Johnstone v Baker
(1817), 4 Madd 474; Macdonald v Macdonald [1932) SLT (HL) 381.
Land is usually classed as immovable property, and so is
generally governed by the law of the country in which the
immovables are situated. This issue of devolution may be especially
significant here when ascertaining the exemption of foreign
property that may or may not pass to a surviving spouse or civil
partner (
IHTM11032).
If there is any question as to the extent of the claim, e.g.
joint property, resolve this before considering the valuation (
IHTM27041).
Any case in which the sale of foreign immovable property is
disclosed and the sale price stated, should be referred to Shares
and Assets Valuation (Foreign) for information purposes whether or
not the proceeds of sale are taxable.
