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1. Tax Residency and Liability

For inheritance tax, liability depends on residency under Article 4 of the 1963 France–UK Double Taxation Convention on Inheritance Taxes (“the Treaty”). For Treaty purposes, a « resident » of a contracting state is any person subject to tax there by virtue of domicile or residence. UK law differentiates « domicile » from residence and nationality; domicile types include origin, choice, and dependence. From April 2025, residence becomes central for UK inheritance tax rather than domicile.

2. French Inheritance Taxation of Non-Residents

On the death of a UK resident, French inheritance tax applies only to assets located in France—including real estate and bank accounts. Assets outside France are exempt, provided the deceased wasn’t a French tax resident. French tax residency is determined by criteria in Article 4 B of the French Tax Code: principal home, principal place of stay (over 183 days/year), main professional activity, or main economic interests in France. If none are met, only French-sited assets are taxed, per Article 750 ter, 2°.

3. Allowances and Tax Rates for Children

Each child inheriting from a parent receives a €100,000 tax-free allowance (Article 779). The balance is taxed progressively:

5% on up to €8,072
10% up to €12,109
15% up to €15,932
20% up to €552,324
30% up to €902,838
40% up to €1,805,677
45% above €1,805,677

Inheritance tax is owed individually by each beneficiary, with calculation based on their specific share.

4. Inheritance Tax Declaration

French inheritance tax returns (“déclaration de succession”) are mandatory for French assets. If the deceased dies outside France, the return must be filed within 12 months. The tax is paid individually by beneficiaries, and the notaire prepares and submits the declaration and arranges payment to French authorities.

5. Double Taxation Relief

Both France and the UK may tax the same assets. To prevent double taxation, Article 6 of the Treaty allows the state secondarily taxing the asset to provide a tax credit equal to the tax paid in the first state, up to the amount actually levied. Claims for relief must be made within five years from the taxable event (Article 7).

General procedure:

French assets must always be disclosed to French tax regardless of UK inheritance tax.
France taxes assets sited in France first, the UK taxes the worldwide estate and grants a credit for French tax paid.
UK IHT returns are often filed first (for Grant of Probate), with French notaire handling the French succession declaration following this step.

6. Capital Gains Tax on French Property Sales

For non–main residence sales, French capital gains tax is charged at 36.2% (19% income tax + 17.2% social charges). There’s no allowance for the first 5 years; from the 6th year, progressive allowances reduce the taxable gain. Full exemption applies after 22 years of ownership for income tax and after 30 years for social charges.

The acquisition price for inherited property is based on the value declared at inheritance, and the ownership period starts at the deceased’s date of death.

7. Double Taxation Relief for Capital Gains

Article 14 of the Treaty directs gains from the sale of French property to be taxed in France, while allowing the UK to offer credits against UK tax due on the same gain as set out by Article 24. Sellers must declare in both countries, but the Treaty credits tax paid in France against the UK liability. If French tax exceeds the UK liability, no refund of the difference is granted.

8. Succession Documentation and Process

To initiate a French inheritance, gather:

Death certificate (full copy)
Heir designation (e.g., Grant of Probate), with apostille and certified French translation
Heirs’ full contact details, identity documents, and bank details

The notaire prepares: