Are there any financial whizzers on the AW? Mrs F a moderately complicated question regarding my FIL (still alive) and my BIL (a British citizen living and working in France) which probably has a fairly straightforward answer.
Google sadly doesn’t provide any guidance.
When I asked a similar question @leem seemed to be the in house expert (with the obvious caveat that no financial advice given on a blog board could replace an appointment with a financial adviser).
No she isn’t, is the short answer I think. She might have to pay Inheritance Tax though. She’s inheriting it first (ping, Inheritance tax) then selling it (no CGT as she hasn’t made a gain – she didn’t buy it).
I speak as a non expert but I am going through conveyancing on selling my late mother’s flat which is jointly owned by me and my brother – so no Inheritance tax (she didn’t own it) but potentially CGT (though in the end we sold it for what we bought it for so no gain, no CGT). We complete tomorrow, fingers crossed. By Clapton that will be a relief. 14 sodding months trying to get rid of the place.
In the way of these things, as you have been discovering, everything has become more complicate. Due to issues with the loft insulation the property will now go to auction, so it’s unlikely to reach the probate value, especially in a falling market. The whole estate doesn’t qualify for inheritance tax as it’s under £1/2million including the main residence.
If your question relates to French/UK tax, there’s a very helpful expat Facebook group called Strictly Fiscal France – proper experts they are
I might well try that, thanks Lodey.
https://www.gov.uk/inheritance-tax
Thanks, tried that last night, sadly didn’t find the answer. To be fair, it’s a niche scenario.
Steve – I may call you Steve? – is this an appropriate moment to mention my willingness to be included as a beneficiary in your will? I quite understand your family will probably have precedence over me, but I can offer a good home for your audio equipment! Just a thought!
I think the Meekong delta has the wrong sort of plug.
I found a British (well, half French) Notaire in London who was super helpful on a vaguely related question. I’ll find their details if that helps.
Yes please. I’m awaiting a call back from a local IFA, I might need more specialist advice if that doesn’t work out.
Given that you state this is a niche issue, related to IHT (so sums may be substantial) and multi jurisdiction (uk and France) please seek bespoke advice (as it seems you are doing). Perhaps see if you can give an outline of the issue and get a quote for more in-depth response particular to the circumstances.
I don’t know how this may relate but remember IHT is paid by the estate of the deceased not levied on the recipient/beneficiary. The tax may ultimately need to be funded by beneficiaries if assets received are not cash or readily convertible.
Gifts (not to spouse etc) made within 7 years of death would need to be added back to value of deceased’s estate to determine IHT value if estate
In the uk there is a tax free CGT uplift in value on death. No CGT on death but IHT comes into play. Measured for IHT purposes at market value which becomes the tax base cost to the beneficiary. Beneficiary pays CGT on any uplift in value thereafter when they sell (subject to personal allowances etc).
Any overseas implications complicates matters as you can be simultaneously caught by uk and say French tax laws. There may be mitigation (via double tax treaties) but this why I stress to get advice.
Domicile and residence/non residence for tax purposes needs to be fully understood if one or mare party is not entirely UK tax status, as it were.
Thanks. Local guidance was (thankfully) surprisingly straightforward and echoed much of your advice.
I think Leem has touched on all the relevant points….and to echo his thoughts, in a complex matter such as this it’s essential to sit down with someone and get professional advice.
In a similar vein my wife is likely to be gifted a decent amount of money in the next few months.
How can she invest it without paying any tax?
ISAs. Certain NS&I products (inc Premium Bonds). Pension contributions perhaps – gross up by 25% and long term tax free growth. Investments can go up and down etc …
Odds have improved on premium bonds. I’m getting steady wins every month.