Inheritance taxation

French Finance

Inheritance taxation

Lilly 06/05/2008, 11:06

Can a sage help me wth this query.

On moneys (No property in France or UK!) held in the UK by someone that lived in France for 3 years these funds then  inherited by a French resident living here for 4.5 years, what taxes are liable and payable? Forgetting UK inheritance thats dealt with with no IHT to pay.

Thankyou in advance for any light in this area, I appreciate that professional help may be needed but its good to be forarmed.

 

 

Re: Inheritance taxation

Pickles 06/05/2008, 14:41
It depends on various things, and you haven't supplied enough information, but IIRC basically if the deceased was resident in France at the time of death, and had their main residence there (rented or owned), then the French Fisc can decide that French tax is due on the deceased's worldwide estate (and the residence status of the inheriter plays no part in the situation). If so, then the normal French succession law wrt to distribution and French taxation law comes into play, and if the relationship between the deceased and the inheriter is not one of direct blood line then there is a very low tax-free threshold and a rapid ramp in the tax payable.

Regards
Pickles

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