I've bought a UK property, as my job will keep me here for 5 years or more. I have put a Will in place as my conveyancer suggested to deal with the house. It covers all my assets, including my assets in France, where I remain domiciled
In addition to tax, domicile affects succession (and divorce). The provisions which deem someone domiciled in the UK after 15 years' residence apply to tax only.
This means that someone who dies domiciled outside the UK, whether deemed domiciled in the UK for tax purposes or not, may need to take forced heirship issues into account. France, for example, has forced heirship provisions. To decide which succession laws should apply to the client's UK and French property can be complicated (but unaffected by the UK leaving the EU). The UK looks to the domicile of the deceased to decide succession, so France; France, under the EU succession regulation known as Brussels IV, then looks to the place where the individual was habitually resident, so the UK; the UK then takes the position that UK real property is governed by UK succession laws but everything else is covered by French forced heirship provisions. It is very important that the client is made aware of both the UK and French succession issues, and the taxes which follow from them, together with planning steps to mitigate their impact, when estate planning.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
