Does French inheritance tax exemption for disabled beneficiaries apply to an autistic grandchild in the UK?

I understand you can leave up to €159,000 tax-free to a registered disabled person whatever their relationship to the deceased. Would this apply to an autistic grandchild in the UK? She does receive some kind of disability benefit in her own right plus one-on-one assistance in school?

A ‘disabled beneficiary’ is entitled to an exemption of €159,325 from inheritance tax. The qualification requirements under Article 779 II of the French Tax Code are that the beneficiary must be either:

• Unable to pursue work under ordinary working conditions due to physical or mental disability, or,

• If under 18, unable to obtain a qualification or apprenticeship of a normal level due to physical or mental disability.

This requires supporting statements from medical experts (eg. a GP) and a social worker to confirm the disability and resulting inability to work.

The French tax office will need to approve this when the inheritance tax form (déclaration de succession) is submitted. Whether or not a person meets the conditions is case specific. 

This exemption is for any beneficiary meeting the above conditions, irrespective of whether they are a bloodline relation or not, and irrespective as to whether they are French resident or not, as long as the estate (or part of it) is taxable in France.

The exemption applies to inheritance or lifetime gifts and can be added to other existing exemptions. So, a person’s child is entitled to €100,000 free of inheritance tax, plus, if he or she is disabled, an extra €159,325 (so €259,325 in total).

A grandchild is entitled to only €1,594 tax free by family relationship (plus the disabled person’s amount if applicable) and then tax is on a sliding scale from 5% to 45%.