The 200 000 British expats living in France are being hit with a vicious tax clampdown by French tax authorities struggling under the weight of onerous national debt.
Every British expat settled in France will have to proactively inform the tax office in France of any inheritance trust they are named in or have set up for relatives back in Britain.
Any failure to comply with the new requirements will see British expats hit with at least a €10 000 fine despite a lack of clarity from the French authorities. For trusts over £200 000 the fine will be a significant 5% of the assets held if the tax office is not informed in time.
Even if British expats in France do beat the fine they will still be liable for a tax bill of between 0.25 percent and 0.5 percent if their total wealth is in excess of €1.3m.
It is also possible that any pension transfers to France after having been built up while working in the UK may also be hit.
To add to the confusion the deadline has been constantly shifting with the original 15 June date giving way to an expected deadline of 31 August.
British expats are advised to urgently consult an expat specialist Independent Financial Adviser as soon as possible.