Transferring assets between France and the United Kingdom is a delicate exercise: it combines differing inheritance rules, the risk of double inheritance taxation and the uncertainties created by Brexit. By anticipating each step and relying on the France–UK tax treaty, you can safeguard your assets and your heirs’ peace of mind on both sides of the Channel.
Understanding the French and British inheritance regimes
France: forced heirship and progressive taxation
- A minimum share is guaranteed to children and/or the surviving spouse
- Free disposal is limited to the “available” portion of the estate
- Inheritance tax is calculated according to the degree of kinship and the value of the assets
United Kingdom: testamentary freedom and Inheritance Tax (IHT)
- Beneficiaries can be chosen freely, with no forced heirship
- 40 % IHT applies above the Nil-Rate Band (currently £325,000, potentially higher for the main residence)
France–UK tax treaty: a partial shield
- Real estate: taxed in the country where the property is located
- Movable assets: taxed in the country of the deceased’s tax residence
- Tax credit: offsets tax paid in the other state, up to the amount owed locally
Note: certain arrangements (trusts, usufruct splits, prior gifts) may still fall outside the treaty—an in-depth audit is essential.
Tax residence and choice of law: anticipating the pitfalls
- Tax residence of the deceased: the key factor for the tax base and applicable rate
- EU Succession Regulation (650/2012): a British national living in France may elect British law in their will, with no direct impact on taxation
- Consistency is vital among habitual residence, centre of economic interests and the wording of the will
Limiting double taxation: tools and strategies
International will
- A single document compliant with both jurisdictions
- Minimises conflicts of law and fully respects your wishes
Cross-border gifts
- France: allowances renewable every 15 years
- UK: Potentially Exempt Transfers (PET) are IHT-free if the donor survives at least seven years
Property-holding companies, trusts and other vehicles
- SCI: simplifies management of French real estate; different treatment in the UK
- Trust: familiar in the UK; may trigger specific French taxation (Article 792-0 bis CGI)
Life insurance
- Favourable taxation and estate exclusion in France
- May be included in the IHT base in the UK—adapt clauses and beneficiaries accordingly
Professional support methodology
- Cross-border asset audit (France/UK) to identify double-taxation risks
- Regular updates of wills and gifts as family or tax rules evolve
- Multidisciplinary coordination among lawyer, notary and Franco-British tax adviser to secure every step
Personalised advice, in line with professional ethics, is essential to protect your heirs and optimise your estate plan.
Conclusion
A successful cross-border estate plan between France and the United Kingdom rests on anticipation, mastery of each country’s rules and rigorous professional coordination. By combining precise audits, appropriate legal and tax tools and ongoing follow-up, you can secure your wealth and offer your loved ones a succession free of unpleasant surprises.
