CG53490 - Securities: debts: general points: situation of the debt
TCGA92/S275
A debt, whether secured or unsecured, will generally be situated in the UK if, and only if, the creditor is resident in the UK. The provisions of TCGA92/S12 (1) and TCGA92/S16 (4) concerning disposals by persons of foreign domicile will not, therefore, apply in these cases.
However, this rule is amended in relation to debts represented by bank accounts in foreign currency, and in these cases losses arising to non-domiciled individuals may not be allowable. See CG12430.