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Where Taxpayers and Advisers Meet

Trust loan - determining situs for IHT

nonresidentalien
Posts: 1
Joined: Mon Aug 12, 2019 9:43 pm

Trust loan - determining situs for IHT

Postby nonresidentalien » Mon Aug 12, 2019 9:57 pm

I'm after some specific advice on whether a loan to me is a UK situs asset for IHT purposes. I understand this is a contentious and complex area, and there may be different treatment depending on whether this is a standard contract loan or considered a "specialty debt". :?

I am a UK resident but non-domiciled (and not yet deemed domiciled)
I was a UK resident/non-dom at the time of the loan
The loan was granted by an Isle of Man based trust, is interest free and callable.
The loan is unsecured and has not been used to purchase UK property

Can anyone tell me if this is considered a UK situs asset for IHT purposes?

Thanks very much!

AGoodman
Posts: 810
Joined: Fri May 16, 2014 3:47 pm

Re: Trust loan - determining situs for IHT

Postby AGoodman » Tue Aug 13, 2019 3:12 pm

The general rule is that a debt is located where the debtor is located.

If you are UK resident, that is the UK.

General rule for speciality debts (those effected by a deed) is that they are located where the deed is located.


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