IHTM27093 - Debts: bank accounts

A bank account is a debt, and under general law is situated at the branch of the bank where the account is kept:

R v Lovitt [1912] AC 212.

This general law rule may be modified for IHT purposes by a Double Taxation Convention.

Any case in which it is claimed that a bank account in the UK must be treated as situated abroad, and therefore exempt from IHT, must be referred to TG. Remember however that some foreign bank accounts can be excluded property and not taxable for IHT ( IHTM04380).

Your Team Leader must be consulted in Scotland.