Review of French inheritance tax « Euro Weekly News

Review of French inheritance tax may see reductions in rates

A Notaire must be used for most inheritances

A Notaire must be used for any inheritance over €5,000 Credit: JLPC CC

Very few people like to pay inheritance tax, many arguing that another tax is being levied on assets that may well have been taxed more than once in the past.

Each country in Europe has different rules and regulations, but now the Cour des comptes, France’s state auditing body, has suggested a fairly radical change.

President Macron stood for election pledging reform of Inheritance Tax levels

In a 92-page document it builds on the electoral pledge given by President Macron to reform the system, especially as the French system is unpopular across the country possibly because it is considered to be so high as it generates one per cent of State tax income.

This review recognises that there are argument for raising the tax, reducing it, or even scrapping it completely.

Very rich find loopholes to reduce Inheritance Tax

As is often the case, those who are very rich are able to use tax loopholes to mitigate the amount paid and according to an Oxfam report, those with very large estates (and these are in the minority) pay on average 10 per cent in inheritance tax.

Spouses (be they heterosexual or in a same sex relationship) are in theory not subject to inheritance tax regardless of the value of the Estate

Children can receive up to €100,000 tax free and then pay inheritance tax ranging from 5 per cent to 45 per cent on a sliding scale.

Siblings however seem to have a very raw deal as if they inherit from a brother or sister, they pay 35 per cent on any amount over around €16,000 and then 45 per cent over €24,000.

Up to 65 per cent Inheritance Tax may be charged

The more distant the relationship, the lower the tax free allowance and the greater the percentage take with, in some cases, 65 per cent being snared by the tax office.

Recommending a better Inheritance Tax deal for the majority

In essence, the report from the Cour des comptes, which is not binding, recommends a better deal for relatives, a removal of certain loopholes benefiting  the very rich, a possible change in regulations to allow assets to be transferred during an individuals lifetime and introduction of an online system in order to speed up completion even though a Notaire will still have to be involved in Estates worth more than €5,000.

Written by

John Smith

Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica. Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene. Currently he is acting as Editorial Consultant for the paper helping to shape its future development. Share your story with us by emailing newsdesk@euroweeklynews.com, by calling +34 951 38 61 61 or by messaging our Facebook page www.facebook.com/EuroWeeklyNews

Comments


    • Marcus Welby

      08 October 2024 • 12:08

      This is the most insidious tax in the world. Everyone pays tax es in some form on whatever they but, we pay tax on our wages, we are ripped off paying VAT then some people save up, they buy property which is all taxed then they die then the greedy government wants to tax on what property or wealth they have left behind. I will work so hard to ensure they get nothing from me. I will give my family cash at every opportunity to be spent on their everyday expenses. That is why we must all fight digital banking; this will be another rip off. We are being turned into slaves and we say nothing, we allow these crooked politicians to rob us blind, the truth is we deserve to be ripped off because we allow them to rob us blind.

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