Double Taxation After a Death Between the UK and France

Two Tax Systems, One Estate

When a UK-domiciled person dies owning assets in France, both HMRC and the French tax authorities have a claim. The UK charges inheritance tax (IHT) on the worldwide assets of anyone who was UK-domiciled at death. France charges droits de succession on any assets located on French soil — real property, bank accounts, vehicles, even valuable art stored in a French residence.

The result is that French assets can be taxed twice: once by France under its succession rules, and once by the UK under its inheritance tax regime. The 1963 UK-France Double Taxation Convention exists to prevent this, but applying it correctly is not straightforward.

How the 1963 Convention Works

The convention and domestic rules allocate taxing rights differently depending on the asset and the deceased's domicile. French immovable property (real estate and land) is a key French tax exposure, while the UK may give credit for French tax paid against UK IHT on the same assets. The available relief is limited and must be checked for the specific estate.

For movable assets (bank accounts, investments, personal property), treatment also depends on the asset, the deceased's domicile, and the convention. Do not assume that French bank accounts escape either system: French banks still freeze accounts and the notaire still includes them in the French succession, so the executor should coordinate any relief for French tax paid.

HMRC Reporting Obligations

The UK executor must declare the deceased's worldwide assets to HMRC on the IHT return, including all French property and financial assets. The French notaire handles the French inheritance tax filing separately — these are two independent processes that do not communicate with each other.

To claim double taxation relief on the UK side, the executor must complete the relevant sections of the IHT400 form and attach evidence of French tax paid. This requires the French déclaration de succession (which the notaire files) and receipts or assessments showing the actual French tax liability. Getting these documents in time to file the UK IHT return can be tight, especially if the French succession is delayed.

If the UK IHT return is due before the French succession is finalised, obtain advice from HMRC or a cross-border adviser about how to claim relief and keep the French assessment and payment evidence available for any later update. Communication and documentation are essential.

French Inheritance Tax Rates

French droits de succession vary dramatically based on the relationship between the deceased and the heir:

• Spouse or PACS partner: fully exempt — no French inheritance tax at all
• Children: €100,000 allowance each, then rates from 5% (up to €8,072) to 45% (above €1,805,677)
• Siblings: €15,932 allowance, rates of 35% to 45%
• Unrelated heirs: minimal allowance (€1,594), flat rate of 60%

The 60% rate for unrelated parties is the trap that can catch UK families who use discretionary trusts. French law does not recognise common law trusts, so assets passing through a UK trust to beneficiaries who are not the deceased's direct heirs may be classified as gifts to unrelated parties, potentially resulting in rates up to 60% and limited or no allowance.

Practical Steps for Families

Navigating both tax systems requires coordination between the UK executor (or their solicitor) and the French notaire. Neither side sees the full picture without prompting. The UK side needs French tax assessments to claim treaty relief, and the French side needs the UK will and Grant of Probate (apostilled and sworn-translated) before it can finalise the succession.

If the estate includes French real property or other French assets, professional cross-border tax advice pays for itself. The interaction between forced heirship, treaty credits, and UK IHT nil-rate band allocation is complex enough that generic guidance will not cover your specific situation.

Our British Person Dies in France — Family Emergency Guide covers the documentation sequence for both tax systems, explains what each side needs from the other, and includes a timeline checklist so the UK and French processes run in parallel rather than blocking each other.