A taxing question.

[Gastines]

I suspect someone will have come up against this and may be able to advise..... If you inherit,free of UK inheritance tax, a sum of money and invest same in UK, are you expected to advise the French H.D.Impot if you are French Tax resident? I would expect to declare the interest received if paid into a French account but would like to find out best route. I am aware that most but not all, ways of investing in UK are not open unless you have UK residency. I may add that I am not the inheritor.

Regards.

[cooperlola]

Money which you inherit from a UK source is not taxable here - at least that was what my accountant and the tax man here agreed when I inherited some money two years ago.  There was some muttering about paying inheritance tax on it if I'd lived here for longer than 5 years but I'm not certain about that.  Interest on it is payable in your country of residence (France), however, whether it is paid into a UK or a French bank account.

[Will]

If you are French resident, you are expected to declare your world-wide income, and the source of that income. After all, an inheritance could make you liable for wealth tax.

How and where individual sums are taxed depends mainly on the terms of whatever double taxation agreement is in force. That which applied to CL's inheritance may or may not still be current. There was certainly talk of it changing.

 

[cooperlola]

True Will.  Happily (or not[:D]) in my case, the sum came below the wealth tax bracket.  I believe the 5 year residency rule was in discussion at the time but I don't know the outcome.