foreign inheritance count as income tax?

Wig

Does a foreign inheritance, (France), for a UK resident,

get taxed in the UK as income?

For UK residents, does it get taxed in France under their rules or is it treated in its entirety within the UK?

Thanks

Randvegeta

In the UK, your inheritance should not be subject to any tax. In the UK, IHT is subject to the deceased's estate. There may be tax implications in France but you will need to check the French tax laws for that.

Wig

Hi,

I have been checking, and AFAICS ....
The deceased, being resident in France will have their estate subject to French IHT laws. The beneficiary whether UK resident or French resident will still receive an amount after the the French IHT has been taken.

As this is an "other distant relative" there will be a tax free allowance of €1,594 and the rest will be taxed at 60% this is unavoidable. But I have not found if these rates were different before the August 2012 tax allowance changes (the 60% would still be the same but the tax free allowance may have been more).

Also my research suggests that there will be no double whammy on the same amount by UK tax authorities...apparently a UK/France agreement.