IHTM27076 - Foreign property: locality of assets (situs): bearer securities

A bearer security was one where the ownership passes by delivery of the document of title. An example would be a security or bond which is not listed on a register. A bearer security was situated, for Inheritance Tax purposes, in the place where the document of title is found at the material time. Special rules applied to securities listed on a register (IHTM27121) Att Gen v Bouwens [1838] 4 M & W 171, Winans v Att Gen [1910] AC 27. This does not apply to certain qualifying international securities (IHTM27141).

Note that, under Section 84 of the Small Business, Enterprise and Employment Act 2015, no new bearer securities could be created from 26 May 2015 and any existing bearer securities would have to be exchanged for registered securities, or cancelled, by 26 February 2016.