Situs of assets for succession and IHT
Situs of assets for succession and IHT

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Situs of assets for succession and IHT
  • What is the relevance of situs to succession and the administration of estates?
  • What is the relevance of situs to IHT?
  • Situs of assets under the common law

Situs of assets for succession and IHT

When you advise an individual on cross-border issues or offshore tax planning, it is important to establish the 'situs' (ie location) of the assets owned by or for the individual. This Practice Note explains the relevance of situs for succession and inheritance tax (IHT) and looks at the meaning of 'situs' for these purposes.

The aim is to introduce the common law concept of situs. However, in practice the situs of each asset must be considered on a case by case basis, with reference to the relevant case law.

Although the common law (or private international law) generally determines the situs of an asset it may be modified by legislation for specific taxes (eg capital gains tax (CGT)), double taxation relief or non-tax purposes. For guidance on the situs of assets for CGT, see Practice Note: Situs of assets for CGT (and private client).

What is the relevance of situs to succession and the administration of estates?

The law of England and Wales makes a distinction between movable and immovable assets; succession to movables is governed by the law of domicile and succession to immovables is governed by the law of the country in which they are situate. This needs to be taken into account when drafting a Will for an individual domiciled in England and Wales who holds assets in a

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