Usufruits and their drafting to fit the Brits
February 3rd 2016
Given the continuing confusion as to the status of usufruits
under English tax law, owing largely to the errors in their April
2013 Newsletter as published by HMRC and their subsequent
reiteration of their unlawful position in 2015, Peter has outlined
briefly certain precautions that need to be taken to clarify the
language used in any acte creating the French dismemberment into
the two separate legal property rights defined under the Code
civil, so as to ensure that HMRC cannot misstranslate these to
their in"equitable" ends.
However it would be unwise for any French notary or avocat to
attempt to draft such an acte for an individual likely to be
or to become subject to British IHT on their
estate/succession to do so without their client taking Peter's
advice and assistance as to the French drafting.
Please contact Peter for advice if you are having a
dismemberment drafted in a lifetime gift or if you are an heir
taking land in France under French law and are receiving the
usufruit as a surviving spouse or the nue-propriété as a child.
http://www.overseaschambers.com/media/17890/usufruits%20and%20their%20drafting%20to%20fit%20the%20brits.pdf