Inheritance tax planning 'is essential for Britons moving to France'
Planning inheritance tax is essential for Britons retiring to France because of the country's more stringent tax laws, according to a property services business.
The WAY Group noted that some 200,000 Britons have moved to France, but some may not be aware that there is a strict threshold of 76,000 euros (£51,350) for personal allowances on transfers between spouses upon death.
Couples who are not married are also likely to be "hammered" by the French tax authorities
Furthermore, for transfers to children, this allowance is reduced to 50,000 euros, Mortgage Strategy magazine reports.
Paul Wilcox, chairman of the WAY Group, remarked: "But the French tax authorities also have a system known as assurances-vie, which will allow unlimited amounts to be sheltered from punitive Gallic IHT laws but it is crucial to set up an IHT mitigation plan before taking up residency."
Meanwhile, the UK's Inland Revenue could also take an interest in tax affairs if people moving overseas retain property - even something so small as a burial plot.
Inheritance tax issues are also of particular importance in Spain, to where a large number of British pensioners relocate.
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