Inheritance Tax France - UK Property

[keithgwmarsden]

I am resident in France, not property owner in France or England. My mother has left in her will her property to me. Does this mean that I would have to pay French tax, and if so the property would have to be sold to meet the bill.

[Hegs]

> I am resident in
>France, not property owner in
>France or England. My mother
>has left in her will
>her property to me. Does
>this mean that I would
>have to pay French tax,
>and if so the property
>would have to be sold
>to meet the bill.

I assume your mother is still based in the UK.

*Please* check for yourself, but I believe from my own investigations - and this was verbally confirmed to me by a local French tax inspector - that on overseas assets (i.e. outside France) you - the receiver - would have to have been tax-resident in France for 5 of the last 7 years in order to pay inheritance or gift tax in France, and it would then be subject to the double taxation exemption. But you must still declare it.

However, this is contradicted by this from the UK French Embassy, which suggests that no tax is payable.

http://ambafrance.org.uk/fiscal/maj/questions/questgr.htm#19

"a. When a deceased person was domiciled abroad, only the French assets are liable to inheritance tax in France. Taxable assets include properties, tangible assets, goodwills, and shares in French companies."