Is Small Inheritance Taxable?

jardiniere
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Is Small Inheritance Taxable?

Post by jardiniere » Sat May 05, 2018 11:58 am

Please advise if an inheritance (from UK) is taxable at a special rate, tax-free or just added to global income? Thank you in advance.

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mysty
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Re: Is Small Inheritance Taxable?

Post by mysty » Sat May 05, 2018 12:03 pm

Depends on what one calls small.
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Re: Is Small Inheritance Taxable?

Post by Nomoss » Sat May 05, 2018 12:06 pm

I believe that an inheritance is not income, and having in any case already been taxed in the UK, does not have to be declared.

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Re: Is Small Inheritance Taxable?

Post by jardiniere » Sat May 05, 2018 12:34 pm

mysty1 wrote:
Sat May 05, 2018 12:03 pm
Depends on what one calls small.
£3,000 not huge but very welcome but would rather have my SIL back.

Nomoss,
having in any case already been taxed in the UK
I don't think so. What makes you say that?

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Re: Is Small Inheritance Taxable?

Post by mysty » Sat May 05, 2018 12:38 pm

Thats tax free but having a quick read it looks like nomoss is right. I always thought you paid it again in France if it was over a certain level. 350K
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Re: Is Small Inheritance Taxable?

Post by Nomoss » Sat May 05, 2018 12:41 pm

jardiniere wrote:
Sat May 05, 2018 12:34 pm
mysty1 wrote:
Sat May 05, 2018 12:03 pm
Depends on what one calls small.
£3,000 not huge but very welcome but would rather have my SIL back.

Nomoss,
having in any case already been taxed in the UK
I don't think so. What makes you say that?

The deceased's estate is liable to tax in the UK, not the inheritors. Any tax due will have already been paid before anything is distributed.
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jardiniere
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Re: Is Small Inheritance Taxable?

Post by jardiniere » Sat May 05, 2018 12:43 pm

OK. Thank you both. Don't have to wait long for replies on this new forum!

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Re: Is Small Inheritance Taxable?

Post by exile » Sat May 05, 2018 2:14 pm

I hate to be a bringer of bad news, but inheritance taxes are not covered by the Double Taxation Treaty.

I would say then (as a non-expert) that the inheritance is covered by French taxation, even if the inheritance has already been taxed in the UK. The only get out of jail free card I can think of is that it might be considered in France as a gift, but I really doubt it.

I would recommend asking at the tax office or just hope they never find out about it.

https://assets.publishing.service.gov.u ... _force.pdf

article 2 lists those taxes covered by the convention.

Edit to add: Article 23 seems to imply that inheritance is expressly taxable in both countries.

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Re: Is Small Inheritance Taxable?

Post by Nomoss » Sat May 05, 2018 2:40 pm

I think the 1963 Treaty on Inheritance is still in force. If you want to wade through it https://uk.ambafrance.org/Treaty-Inheritance-tax

In this old article there is an opinion by a Notaire whose view, based on this treaty, is that UK inheritances received in France are not taxable in France https://www.connexionfrance.com/Archive ... -in-France

I just remembered that when I transferred money I inherited in the UK into my French bank account in 2005, the bank was quite satisfied with my statement that it was an inheritance. I'm sure they would have informed the taxman if appropriate. I heard nothing further about it.

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Re: Is Small Inheritance Taxable?

Post by mysty » Sat May 05, 2018 2:51 pm

The OP does not pay anything, I had a small inheritance a few years ago and the accountant said nothing was due in tax in France. Perhaps for a larger amount but could not find anything online that was clear.
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