Commentary

I9.123 The effect of foreign tax on IHT

IHT, trusts and estates

I9.123 The effect of foreign tax on IHT

I9.123 The effect of foreign tax on IHT

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 A2.103) 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.  

    •     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.  

    •     IHT is chargeable on the same

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