CONVENTION BETWEEN FRANCE AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND TO AVOID DOUBLE TAXATION IN MATTERS OF INHERITANCE TAXES
Signed in Paris on 21 June 1963,
Approved by Law No. 64-562 of 17 June 1964
(Published in the Official Journal on 18 June 1964),
Entered into force on 30 June 1964,
Published by Decree No. 64-789 of 27 July 1964
(Official Journal of 1 August 1964),
Erratum published in the Official Journal on 10 September 1964.
CONVENTION BETWEEN FRANCE AND THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND TO AVOID DOUBLE TAXATION IN MATTERS OF INHERITANCE TAXES
The Government of the French Republic and the Government of the United Kingdom of Great Britain and Northern Ireland,
Desiring to conclude a Convention to avoid double taxation in matters of inheritance taxes,
have agreed upon the following provisions:
Article 1 – Scope of Application
- This Convention shall apply to:a) In France, the inheritance tax levied on hereditary shares;b) In the United Kingdom of Great Britain and Northern Ireland, the estate duty levied in Great Britain.
- This Convention shall also apply to any other taxes of a similar nature that may be established in France or in Great Britain after the date of its signature or in any other territory to which it may be extended under Article 9 or to which it applies under Article 10.
Article 2 – Definitions
- For the purposes of this Convention:a) The term “France” means metropolitan France and the overseas departments;b) The term “United Kingdom” means Great Britain and Northern Ireland;
c) The term “Great Britain” means England, Wales, and Scotland; it does not include the Channel Islands or the Isle of Man;
d) The term “territory”, when used concerning either contracting party, means France or Great Britain, as required by the context;
e) The term “tax” means, as required by the context, the inheritance tax levied in France or the estate duty levied in Great Britain.
- For the purposes of applying this Convention by either of the contracting parties, any term not otherwise defined shall, unless the context requires a different interpretation, have the meaning attributed to it by the legislation governing, in the territory of that party, the taxes to which this Convention applies.
Article 3 – Determination of the Location of Assets
- If, at the time of their death, a person was domiciled in a part of the territory of one of the contracting parties, the location of an asset shall, for tax assessment purposes and for the calculation of credit to be granted under Article 6, be determined exclusively in accordance with the rules set out in Article 4.
- Paragraph 1 of this article shall apply only if, apart from the provisions of Article 4:a) The asset is taxable under the legislation of each of the contracting parties; orb) If the asset, being taxable under the legislation of one of the contracting parties, would also be taxable under the legislation of the other contracting party were it not for a specific exemption.
Article 4 – Rules for Determining the Location of Assets
The rules mentioned in paragraph 1 of Article 3 are as follows:
a) Immovable property is deemed to be located where it is situated; real property rights, except for those arising from mortgage guarantees or other securities, are deemed to be located where the property to which they relate is situated.
b) Tangible movable property, except as specifically provided otherwise, is deemed to be located where it is found at the date of death, or, if in transit, at its destination.
c) Claims, whether secured or unsecured, are deemed to be located where the deceased was domiciled at the time of their death.
d) Government bonds, municipal bonds, or other securities issued by public authorities are deemed to be located where the deceased was domiciled at the time of their death.
e) Shares and capital interests in companies are deemed to be located where the company was incorporated.
f) Amounts payable under life insurance policies are deemed to be located where the deceased was domiciled at the time of their death.
g) Partnerships, including general partnerships, limited partnerships, or civil law partnerships, are deemed to be located where the business is primarily conducted.
h) Clientele, as an asset of a commercial, industrial, or professional activity, is deemed to be located where the business or profession was conducted.
i) Ships and aircraft are deemed to be located where they are registered.
j) Intellectual property rights, including patents, trademarks, and copyrights, are deemed to be located where the deceased was domiciled at the time of their death.
k) Rights and claims derived from legal actions are deemed to be located where the deceased was domiciled at the time of their death.
l) Any other rights or interests are deemed to be located in accordance with the legislation of the contracting party where the deceased was not domiciled.
Article 5 – Taxation Rules
- When a person was domiciled in France at the time of death, no tax shall be levied in Great Britain on assets that are neither located in Great Britain nor transferred under British law.
- When a person was domiciled in Great Britain at the time of death, no tax shall be levied in France on assets that are not located in France.
- Each contracting party shall apply exemptions, deductions, and relief as if the deceased were domiciled in its own territory.
Article 6 – Tax Credit
When, at the time of death, a person domiciled in one contracting state is taxed on assets located in the other, the first state shall grant a tax credit equal to the amount of tax levied by the other state on the same assets.
Article 7 – Claims for Tax Relief
- Any claim for tax relief must be submitted within five years from the date of death.
- Refunds shall be made without interest.
Article 8 – Exchange of Information
- The tax authorities of the contracting parties shall exchange information necessary for the enforcement of this Convention.
- Such information shall remain confidential and shall not be disclosed except for tax assessment and collection purposes.
Article 9 – Extension of the Convention
This Convention may be extended to other territories under conditions agreed between the contracting parties.
Article 10 – Application to Northern Ireland
This Convention shall apply to Northern Ireland in the same manner as it applies to Great Britain.
Article 11 – Entry into Force
This Convention shall enter into force upon notification of the completion of the required constitutional procedures in both contracting states.
Article 12 – Termination
This Convention shall remain in force for at least three years. If not terminated with six months’ notice, it shall continue indefinitely until a contracting party provides written notice of termination.
Signed in Paris, 21 June 1963.
For the Government of the French Republic: F. LEDUC
For the Government of the United Kingdom of Great Britain and Northern Ireland: PIERSON DIXON
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