# Does Gift Tax apply for transfer from UK domiciled person to French national/resident



## Tom441 (Sep 3, 2017)

My brother died in 2000 in the UK. He had been living in France for many years and had a french girlfriend/partner. And daughter who was 8 when he died. She is now 25 and living in France (she has always lived in France). He died with no significant assets in France... he had some UK assets that were mostly gifted to a sibling (who had lent him money). Daughter was beneficiary of anything remaining which in reality was very little.

My mother - lived in UK and died in 2005 in the UK (no french assets). She left her assets to remaining 3 brothers/sisters but nothing to French granddaughter. Fyi that was because she was concerned to make sure the money was not wasted - but she did not create trust fund and made no provision.

Some of the 3 siblings want to now give some portion to the French niece. But not sure if French gift tax applies. Sum involved is likely to exceed £25k from each sibling.
As I understand it the basic idea of gift tax is just €7967 can be given to a niece tax free. Then its 55% tax. 

Questions:
1. Does Gift Tax apply? e.g. I am not sure if money sent from outside France might not be under this rule or have a different rule - or perhaps no rule?

2. Could money be placed in a UK bank in her name and have a card to withdraw in France? or would that still strictly get caught by Gift Tax or other rules?

3. Otherwise I suppose one or more of siblings could simply give her a debit, credit, or pre-charged card as a second card holder on our own UK account? Allowing her to use/spend. Apart from being an inefficient method and not very tidy ... this would be ok? 

any comments and advice would be appreciated


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## Bevdeforges (Nov 16, 2007)

Someone with more experience of French gift tax will no doubt turn up here, but as I understand it, "gift tax" usually applies to the giver, not the recipient. It is usually a sort of advance payment on the inheritance tax, so I suspect the gift tax laws and rules of the UK would apply - unless the gift consists of real property located in France.

But that's just my understanding of it (based on how things work in the US). Let's see if we can find someone here with experience of the gift tax rules in Europe.
Cheers,
Bev


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## Tom441 (Sep 3, 2017)

thanks Bev

I am pretty sure the French rules apply for recipients/donee (not giver/donor). But lets see what else others have to say!

I think the purpose of the tax is connected to inheritance tax planning - but that is also why I wonder if it applies when the gift comes from outside France - as I would expect it to be aimed at domestic inheritance primarily or solely.

Tom


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## Bevdeforges (Nov 16, 2007)

OK - this is the page from the French Service Public site on Gift Taxes: https://www.service-public.fr/particuliers/vosdroits/F10203 and it is (of course) in French.

Evidently it depends on the "domiciliation" of the recipient and on their relationship to the donor. But there is an exoneration that your niece may qualify for. (French inheritance law is pretty bizarre as to who has to get what.)

Take a look at the Service Public site and perhaps it might be worthwhile to get in touch with a notaire in France.
Cheers,
Bev


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## Tom441 (Sep 3, 2017)

Thank you Bev
thats very useful. I can ask my niece to read the detail.
as a quick pointer what is the exoneration that you think may apply?

cheers
Tom


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## Bevdeforges (Nov 16, 2007)

Click on the drop down thing for "Sommes d'argent" (basically gifts of cash) and then check the circle for dons familiale (family gifts) there is a list of conditions for exonerating up to about 32,000€ of gift every 15 years from a family member where the gift is related to the person's situation as an heir. It's all a bit complicated, but you never know about these things until you ask a notaire.
Cheers,
Bev


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## Tom441 (Sep 3, 2017)

great - thanks Bev!

That may yet be a possibility.

Would still be interested in anyone else's views on any of the 3 original questions. Hopefully once we have a better base knowledge we can talk to notaire or other specialist with more meaningful questions.
cheers
Tom


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