Does an inheritance need to be declared?

Does an inheritance received, whether in the UK or France, have to be declared via the annual income tax return. Does it make a difference if it is below a certain amount?

Inheritances do not have to be declared via the annual tax return as they are not seen as part of a person’s normal declarable income. They may, however, have to be declared as inheritances and there are specific forms for this. These are usually filled in by the notaire in the case of dealing with the estate of someone who has died in France.

The letter of the law states that a foreign inheritance should also be declared to France, even where it is not actually taxable in France due to treaties and the nature of the inheritance (for example in the case of inheriting only UK-based property from a UK resident). See: tinyurl.com/non-res-succ.

The Connexion was told by a tax lawyer that failing to declare a non-taxable inheritance could, in theory, result in a small fine for not completing the paperwork but not a fine based on a percentage of an inheritance which cannot be taxed in France.

Whether any French inheritance tax is due depends on from whom you inherit, where they live and any double tax treaties in force between the countries concerned. For example no French tax is due on inheritances from a UK resident where there is no French-based property in the estate.