French Tax Law: No Expanded‌ Gift⁢ Tax ⁤Break⁣ for 2025

Paris (AP) — A proposed amendment to French finance⁢ law that would have ‍allowed⁣ for an expanded gift tax reduction in 2025 ⁣will not take affect. ⁤The measure, which ​aimed ⁣to provide a tax break of 152,500 euros for early donations from life​ insurance contracts, was withdrawn before the final budget was adopted.

Reader ⁣Question Sparks Inquiry

The issue⁣ arose ⁤from a reader’s question about potential changes to gift tax laws. The reader, identified only ‌as FH, inquired ‌whether an individual over 80 years old could make a tax-free​ donation to a daughter.

Did the⁢ law finally change? I am over 80 years old, can I make⁣ an early‍ donation to ‍my daughter without taxes? ‌FH asked.

Proposed Amendment Details

The amendment, proposed last October, would⁣ have allowed life insurance contract ‌holders to make donations between Jan.1, 2025, and Dec. 31, 2025, benefiting from a 152,500 euro ‍tax reduction per donor. This⁣ reduction ⁣is ‌typically reserved for ‍beneficiaries upon the death of the⁤ insured. The bill specified⁤ that premiums paid before Oct.⁢ 1, 2024,​ and before the holder’s 70th birthday would be eligible.

Current Law Remains in Effect

Despite initial ‌consideration, the amendment was ultimately removed from the 2025 budget.As a result, the existing law ​remains in⁢ force. Under current regulations, donations from a parent to a⁤ child where the parent is over 80 years ​old are​ capped at a 100,000 euro reduction over a 15-year period. Amounts exceeding this limit are⁢ subject to ‌standard gift ⁢tax rates.

Gift Tax Rates

The⁢ applicable tax rates for taxable shares of donations are as follows: