As the shares of the company were not located in the UK they were considered to be excluded property
and not within the scope (unless the individual was deemed domiciled in the UK through years of UK residence).
Needless to say, this list of excluded property
refers to waterfront property, not warehouse loading "docks." Why the adjuster cited this policy provision to deny the claim remains a mystery that I'll explore in the Academy of Insurance's companion webinar to this article, along with several other bizarre claim denials.
(39) Excluded property
would include property acquired gratuitously, such as "gifts and inheritances to one spouse", as well as property acquired pre-and post-relationship.
The secured notes will be secured by first priority liens on the plant, property and equipment (other than certain excluded property
, and subject to permitted liens) of AK Steel and the subsidiary guarantors and any proceeds of the foregoing.
This blending is appropriate, because cash is fungible (and taxpayers can obtain cash from included and excluded property
), and taxpayers can use any cash to generate present or future deductions.
However, for people domiciled out of the UK, assets owned overseas are regarded as "excluded property
" and, as such, IHT is only payable on those assets which are located in the UK.
If the tiles had been damaged, that would be excluded property
damage, but since exclusions have to be read and applied narrowly and in favor of the insured whenever reasonably possible, the damage to the tubs is just collateral and indirect damage since the subcontractor was not actually working on the tubs.
TEI's letter follows up on an issue discussed at the Institute's December 2005 liaison meeting with the Department relating to indebtedness arising in connection with the acquisition by a controlled foreign affiliate (CFA) of the shares of another CFA where the acquired CFA shares constitute "excluded property
." (The agenda for this meeting was published in the November-December 2005 issue of The Tax Executive.)
"If grandparents have an inheritance tax problem, they could shelter their IHT liabilities through excluded property
or discounted gift trust arrangements, releasing a stream of income to fund for their grandchildren's education fees."
During the TEI's liaison meeting of December 7, 2005, with the Department of Finance, the following question was posed: There is a seeming anomaly in the application of paragraph 17(8)(a) of the Act in cases of indebtedness arising in connection with the acquisition by a controlled foreign affiliate (CFA) of the shares of another CFA where the acquired CFA shares constitute "excluded property
." Assume that CANCO (a taxable Canadian corporation) makes an interest-free loan to wholly owned CFA1, and CFA1 uses the funds to acquire shares of CFA2 (which shares are "excluded property
" of CFA1).
The explanatory notes state that paragraph (b) is being amended to clarify that shares will qualify as excluded property
only if all or substantially all of the fair market value of the property of the other foreign affiliate is attributable to property of the other affiliate that is excluded property
In many cases, the proposal (in proposed subsection 93(1.4) of the Act) would have deemed the shares transferred to be outside the definition of"excluded property
." Consequently, any gain realized by an affiliate on the disposition of the shares (in excess of the amount eligible for a section 93 deemed dividend election) would create foreign accrual property income (FAPI), which is taxed immediately in the hands of the Canadian shareholder if the affiliate is a controlled foreign affiliate.