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Home / Simons-Taxes /IHT, trusts and estates /Part I9 Foreign element /Division I9.1 Foreign element—introduction /IHT foreign element / I9.123 The effect of foreign tax on IHT
Commentary

I9.123 The effect of foreign tax on IHT

IHT, trusts and estates

A liability to foreign taxation must be considered separately because apart from any double taxation agreement and the matters mentioned below, such a liability is not enforceable in this country1 (see A4.602) and therefore is only available to reduce the value of property outside the UK2.

A statutory credit is however allowed against IHT for overseas tax where:

  1. Ìý

    •ÌýÌýÌýÌý the tax is of a similar character to IHT or chargeable on or by reference to death or gift inter vivos in respect of certain property, and

  2. Ìý

    •ÌýÌýÌýÌý IHT is chargeable on the same disposition or event and is also attributable to the value of the same property3 — see F4.104 for

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