IHTA84/S173, says that an allowance shall be made against the
value of the property situate outside the UK for
additional costs of administration or realisation
of the property which are attributable to its situation outside the
This allowance is restricted to the lower of
The allowance is for additional expenses only, i.e. the excess of the expenditure over and above which it would have cost to deal with the property in the UK. The cost of obtaining a foreign grant is permissible but not the cost of reporting the death of a deceased shareholder with a foreign company. If worthwhile you must ask for details of the expenses and point out, if necessary, that the allowance is for additional expenses only and restricted to 5% of value. When deduction agreed, calculate the net value of the asset and refer to Shares and Assets Valuation (Foreign) for conversion if value shown in non- Sterling currency.