UK collects the unspent IPCs of the Germany’s player, then, even if its own capital is in enemy’s hands. See page 21 of the Europe 1940.2 rulebook.
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SZ101 has ships from both US & UK in it. Germany is only currently at war with the UK. Can Germany attack UK ships only without provoking war with the US?
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Yes it can DarthBlitz. I am afraid I do not have the rules in front of me to show you where it says so though.
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In 1940 Europe 2nd Ed. manual. Pg. 15, in the “Powers Not At War With One Another” sidebar:
“If a power at war attacks a sea zone containing units belonging to both a power with which it’s already at war and a power with which it’s not at war, the latter power’s units are ignored. Those units won’t participate in the battle in any way, and a state of war with that power will not result.”