IHTM27161 - Double Taxation Conventions: introduction
Double Taxation Conventions are agreements negotiated between
two fiscal authorities. Their main purpose is to provide relief to
taxpayers from having to pay full tax in both countries
simultaneously on the same property on the same occasion of charge.
They accomplish this in a structured way, as set out in each
individual Convention. Another purpose of a Convention is to
provide rules for when the two countries should exchange
information. (IHTM27162)
IHTA84/S158 gives the UK government authority to enter into
Double Taxation Convention with the government of any territory
outside the United Kingdom.
The UK currently has agreed Conventions under IHTA84/S158
with the following countries:
- Republic of Ireland
- Netherlands
- South Africa
- Sweden
- United States of America
- Switzerland
- France
- India
- Italy
- Pakistan
Details of these are contained in the Inheritance Tax Double
Taxation Conventions.
Whenever you encounter a case where the deceased was
domiciled (
IHTM13001) in one of the convention
countries or owned property situate in one of these countries, you
must consider and apply the terms of the relevant Convention.
You need to remember that not all the countries with which
we have Double Taxation Conventions will necessarily have civil
partnership legislation (
IHTM11032). As a result, please do not
automatically assume that civil partners will have the same rights
as spouses. If the parties make such a claim, please ask them to
substantiate the claim and then refer the file to Technical
Group.
