British Expats in France Could face a fine of up to £8000 on undeclared inheritance trusts
London, UK (Pryce Warner International Group) June 13th, 2012 - British Expats living in France could face an £8000 as part of a new tax clampdown. New laws will require all Expats to inform the Paris tax office of any inheritance trusts that they hold.
The new legislation is set to come into effect this Friday, and anyone not compliant by that time could have to pay the fine. However, the new regulations do not affect those with holiday homes in France, unless the property forms part of a wider inheritance trust.
Graham Keysell, a financial advisor based in Paris, commented: "The French authorities are absolutely gunning for British expats. It’s a real mess: fear is spreading in the confusion because the penalties are big bucks."
The new law has proven controversial as many who will be affected will probably not have heard about it, as the new law also affects beneficiaries. The penalty extends to even the smallest trusts (£1000 or less) but for those with a trust worth over £200 000, they will face a fine of £8000 or a 5% charge.
Expats with trusts worth over £500 000 could be forced to pay up to £25 000 in they do not inform the tax man by Friday.
French property, shares and a variety of other assets are included in the wealth estimate.
By Aneil Fatania
Pryce Warner International Group
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