Civil Partnership now recognised in France

After years of controversy, France has finally amended its legislation and now recognises UK registered Civil Partnerships and affords them similar status and benefits to a French PACS agreement, including an exemption for inheritance tax purposes.

The new law came into effect on 14 May 2009, although for Civil Partners who have paid tax on a gift or inheritance since 22 August 2007, a reclaim may be possible.

Prior to 14 May 2009, UK Civil Partners leaving French property to their Civil Partner would have faced inheritance tax at 60%, the rate applicable for transfers to non-blood relatives. There is a full exemption for spouses and for PACS couples. The PACS agreement allows same sex or different sex partners who are not married, to register their partnership and benefit from similar tax breaks to married couples, including a full exemption on inheritance tax. However, you had to be free to marry in order to be eligible to register as a PACS couple. UK Civil Partners were not able to register for this reason.

An interesting footnote to the new law allows a reclaim of tax for Registered Civil Partners where the date of the gift or the date of the probate was after 22 August 2007

For more information please contact French Law Consultancy www.frenchlawconsultancy.com