Do inherited estates in the UK need to be declared in France?
There is an inheritance tax treaty between France and the UK
A UK estate will have been subject to UK tax
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Reader Question: My mother, domiciled in the UK, recently died, leaving me her estate. I live in France. I believe this is exempt from French tax, but is it meant to be declared here? It is not considered ‘income’ in the UK.
Inheritances are also, in France, not treated as ‘income’, however as a general rule inheritances do have to be declared, specifically as inheritances (not in the income tax return).
Under the UK-France inheritance tax treaty, there is no French inheritance tax when a resident of France inherits from a UK resident and there is no French property involved.
Read more: Do UK or French inheritances need to be declared on French tax return?
The problem then arises as to whether the inheritance must be declared.
Officially, the answer is yes, because French tax law states that a declaration of inheritance (déclaration de succession, not of income, ‘revenu’) has to be made when a resident of France inherits.
It does not mention an exception for inheritances from abroad, however there is an exemption where you inherit from a parent and their estate was valued at less than €50,000.
You can declare to the non-residents’ tax service, within a year of the person’s death (see also the information at this link, including contact details, however, we note that one form mentioned, 2706, is not currently available for download).
If you need help with this, the non-residents’ service may be able to assist, otherwise, a professional such as a notaire or accountant used to dealing with foreign clients may be able to advise.
One specialist tax lawyer told us that any fine for non-compliance would, if levied, be low, as it would be an administrative fine for not filling in the forms but cannot be calculated as a percentage of a non-taxable inheritance.
