This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Trust loan - determining situs for IHT

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!

Posts: 886
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.

Posts: 2
Joined: Mon Jul 29, 2019 7:01 am

Re: Trust loan - determining situs for IHT

Postby alex.mercado » Mon Sep 23, 2019 7:45 am

I found it via google is based in the UK you can ask them.

Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”