ABSTRACT
A transfer of property is a convenient occasion for the levying of tax especially when a transfer is inevitable as is the case on the death of the owner of property. Double taxation may arise in a variety of circumstances. The risk of double taxation is increased by the fact that taxation may be levied on the basis that beneficiaries rather than the deceased were domiciled in a country. Foreign tax may have already been paid by the ancillary personal representatives in a foreign country before the net proceeds of assets in that country were remitted to the principal administrators in England. The tax imposed in the overseas territory must be of a character similar to that of inheritance tax, or be chargeable on or by reference to death or gifts inter vivos. Where relief is available under a double taxation agreement as well as by way of unilateral relief, the taxpayer will be given whichever is the greater relief.
