Inheritance Tax

[mickey jim]

My mother died a short while ago. She was living in the England when she died. I am a French resident and tax payer.

My mother left a small amount and there is no inheritance tax due in the uk.

However, what is the legal procedure here a) do I need to declare it on my tax form next year (and if so, does anyone know where), and b) will I need to pay any tax on it in France?

Thanks.

[parsnips]

[quote user="mickey jim"]My mother died a short while ago. She was living in the England when she died. I am a French resident and tax payer.

My mother left a small amount and there is no inheritance tax due in the uk.

However, what is the legal procedure here a) do I need to declare it on my tax form next year (and if so, does anyone know where), and b) will I need to pay any tax on it in France?

Thanks.[/quote]

Hi,

    If you have been in France less than 6 years then there is no liability. If you have been here "more than 6 years of the last 10", there is a theoretical liability, under a law which was never intended to apply to cases like yours, but was badly conceived and drafted. . As an heir in direct line you would anyway have ,in France , an inheritance- tax- free allowance of 156 359€. If as you indicate it is less than that ,then even if you have been here over the time limit, I suggest you do nothing.( In fact I would do nothing in any case, even if theoretically liable--I would wait and see if they picked it up, unlikely if banked outside France, and only respond if questioned --provided you don't attempt to conceal the facts once you have been asked , there will not be any penalties.

[mickey jim]

Thanks Parsnips.

So are you saying that because I have lived here for less than 6 years and because I am an heir in direct line inheriting less than 156 359E then I don't need to do anything (not even declare it on my tax form next year)?. I'm worried that they may pick it up from my UK bank as my interest will increase next year (they are fully aware of my UK bank account and how much interest I get - I've seen the printout at my local tax office !!).

[parsnips]

[quote user="mickey jim"]Thanks Parsnips.

So are you saying that because I have lived here for less than 6 years and because I am an heir in direct line inheriting less than 156 359E then I don't need to do anything (not even declare it on my tax form next year)?. I'm worried that they may pick it up from my UK bank as my interest will increase next year (they are fully aware of my UK bank account and how much interest I get - I've seen the printout at my local tax office !!).[/quote]

Hi,

     You don't declare inheritance on the income tax form , inheritance matters are declared separately, usually via a notaire. If  in spite of the low interest rates and the low pound ,your bank interest next year is hugely greater (which I doubt) and the tax office query it , you can tell them the unvarnished truth which clears you of any need to declare the inheritance on two counts--1. you are outside the time limit , and-- 2. even if you weren't there would be no liability as you are under the allowance limit.

[mickey jim]

Thanks again Parsnips. This has been really helpful.