United Kingdom & France: UK ⇔ France: What families need to understand

Principle 01 — Domicile: the concept that changes everything

In cross-border inheritance, “where you live” is not the same as “where you are domiciled.” The distinction shapes which country’s succession law applies to your worldwide estate — and it is not easily changed.

The UK concept of domicile is a common law principle quite distinct from residence or nationality. You inherit a domicile of origin at birth (usually your father’s domicile), and it takes deliberate, sustained action to acquire a domicile of choice elsewhere. UK courts have historically set a high bar for this change.

France uses domicile fiscale — broadly, tax residence — as its primary connecting factor for inheritance tax on the deceased’s side. A French-resident individual who considers themselves “clearly still British” may still be deemed French-domiciled for French tax purposes.

The critical implication: someone with a UK domicile who is also resident in France at death may face assessment under both systems simultaneously on the same assets. The 1963 treaty provides some relief, but its coverage is specific and its application requires careful analysis.

Principle 02 — The French beneficiary rule: residence matters on both sides

France’s inheritance tax system has a mechanism — often overlooked by UK-side planners — that can bring an inheritance within the French tax net based entirely on where the beneficiary lives, not the deceased.

Under French tax law, a beneficiary who has been resident in France for a sufficient number of years out of the decade preceding the inheritance may be subject to French inheritance tax on assets received from abroad — not just French-situs assets. This applies even if the deceased was never resident or domiciled in France, and even if the assets themselves are located outside France.

The deceased’s non-residence in France is not, on its own, sufficient to take an inheritance outside the French system if the beneficiaries are French residents. Families where parents have returned to the UK while children remain in France face significant potential exposure on this basis.

Principle 03 — Asset location (situs) and what it determines

Where an asset is legally located — its situs — is a foundational concept in cross-border inheritance. For straightforward assets, situs is intuitive. But for enveloped assets (property held through companies), shareholdings, and trust interests, the analysis is more complex.

UK Inheritance Tax has specific rules around enveloped property — real estate held through non-UK companies — that bring those assets back into the UK charge regardless of the corporate wrapper. A French SCI holding French property, owned by a UK-domiciled individual, does not by itself escape UK IHT simply because the company is French.

Principle 04 — The 1963 Treaty: what it does and does not do

The UK–France Double Taxation Convention on estates and inheritances is one of the few bilateral inheritance tax treaties the UK maintains. It provides genuine relief in some scenarios. But it is not a comprehensive shield.

The treaty allocates primary taxing rights over specific categories of assets — broadly, immovable property goes to the country where it is situated; business assets go to the country of the permanent establishment. Where one country has primary rights, the other provides relief against double charge.

However, the treaty was drafted in 1963 and has not been substantially updated. It pre-dates many modern structures and holding arrangements. Its interaction with France’s beneficiary-residence rules creates interpretive uncertainty.

Principle 05 — Succession law: forced heirship and freedom of choice

UK succession law gives testators broad freedom to distribute their estate. French succession law does not.

France’s réserve héréditaire (forced heirship) reserves a minimum share of the estate for children, which cannot be defeated by the terms of a will. A will that attempts to give everything to a spouse and disinherit children would be challengeable under French law.

The EU Succession Regulation (Brussels IV) allows individuals to elect for the law of their nationality to govern their succession. For a British national resident in France, making such an election in their will may allow UK succession law to govern the estate. However, this election does not affect the tax position — only the succession rules.

Planning triggers — You should be thinking about this if…

• You own property in France or the UK while being resident in the other country — or through a company or trust structure.
• Your children are resident in France while your assets are primarily UK-based, or vice versa.
• You have moved between the UK and France in the last 10–20 years and have not reviewed your will or domicile position since.
• Your will was drafted in only one jurisdiction — it may not be effective, or may be inefficient, in the other.
• Assets are held through companies, trusts, or SCIs — the assumed tax benefits of these structures may not survive cross-border analysis.
• You have a blended family, unmarried partner, or non-standard family structure — French and UK law treat these very differently on intestacy and forced heirship.
• You have never had a joined-up review covering both jurisdictions simultaneously.

What this guide cannot tell you

• Whether you are UK-domiciled, French-domiciled, or in a contested position — this requires specialist legal advice.
• Whether the 1963 treaty protects your specific assets in your specific structure — treaty application is interpretive.
• What your actual French inheritance tax exposure would be — this depends on asset values, relationship to beneficiaries, and domicile status.
• Whether your existing will is effective, valid, or tax-efficient under both systems.
• How recent legislative changes in either country affect your position.