THE COST OF DYING PLUMMETS IN FRANCE WITH NEW INHERITANCE TAX REFORMS Wednesday 22 August 2007 PDF Print Going headlong against the Napoleonic Code and some of the principles of the Revolution of 1789, Nicolas Sarkozy today instituted changes to the Inheritance Tax threshold, as part of the new ‘Work, Employment and Buying Power’ W.E.B. legislation. Trevor Leggett, Executive Director, Leggett Immobilier comments, “Inheritance Tax, like so many outmoded ideas such as Wealth Tax, has long been a sticky subject in France. But now, with changes to the Inheritance Tax threshold, Nicolas Sarkozy is set to revolutionise the economy and boost investment in the housing market. It is estimated that with the new changes as many as 95% of the population of France will no longer pay any Inheritance Tax at all upon the death of their parents. These changes will be of interest to British homeowners in France as they will also benefit.” The new legislation (LOI 2007 – 1223 du 21 aout 2007, en faveur du travail, de l’emploi et du pouvoir d’achat), raises the Inheritance Tax threshold from 50,000€ to 150,000€ per parent for each child. For nephews and nieces the new threshold will only be 7,500€, while for brothers and sisters the threshold rises from 5,000€ to 15,000€. To show how this would work, take the example of what happens if a widowed man and father of two dies. Under the new legislation each child can receive up to 150,000€ tax free – whereas, until now, the children would each have had to pay 13,300€ tax on this figure (a saving of 26,600€ between them). Trevor Leggett continues, “It appears that now you can also make annual donations that are free of inheritance tax. This is a massive improvement on the original time restriction of 10 year intervals and will help parents and grandparents provide regular allowances.” Up to 30,000 euros can be given every year to a child, grandchild or great-grandchild or even, in their absence, a nephew or niece. The donor must be under 65 years on the day of the donation and the recipient must be aged over 18 years. However, as Trevor Leggett says, “Care will have to be taken to avoid the donation pushing the recipient into a higher tax bracket. The recipient will still have to pay the appropriate level of income tax on the donation.” Trevor Leggett ends, “With this new W.E.B. legislation people in France will undoubtedly, like their British and Spanish counterpoints, favour bricks and mortar as a solid investment as opposed to life assurance policies, which for many years now have had considerable inheritance tax breaks. Now you can die in peace knowing that your hard earned cash is going to pass to your children with the tax man getting a much smaller share. Certainly this new W.E.B. legislation should free up some cash and get things moving along a little faster, which is good news for everyone in France.” Buyers interested in finding out more about buying in France should contact Leggett Immobilier on (UK) 08700 115151 or (France) 00 33 5 53 56 62 54; email firstname.lastname@example.org. Check out their website www.frenchestateagents.com with over 2,000 properties for sale. For further information please contact: Jonathan Haynes Leggett Immobilier Press Office Tel: 00 33 (0) 1 74 70 15 80 Email: email@example.com Note to Editors: 1. Founded by Trevor Leggett in 1997, Leggett Immobilier is the largest, fully registered and independent Anglophone French estate agency in France. 2. Leggett Immobilier S.A.R.L. is a licensed French estate agent, not an introductory agent, not a company based in the UK, nor an internet portal. Its website www.frenchestateagents.com is the website address for Leggett Immobilier and not an internet portal. 3. Leggett Immobilier S.A.R.L., as a licensed French estate agent, charges standard agent fees with no extra “handholding/finder’s fee/legal advice fees”. 4. Members of FNAIM, the Association of French Estate Agents, Leggett Immobilier is fully insured and registered. 5. Leggett Immobilier has a fast growing team of over 40 fully licensed sales agents, trained at the company’s head office training centre in La Rochebeaucourt, France. 6. Leggett Immobilier services include up-to-date website currently with over 2,000 properties; full information provided on the whole buying and selling process including New Build and Buy-for-Investment; full search and selection; preplanned visits with trained, language-competent, registered and insured sales agents; full translation of Leggett Immobilier sales documents; assistance and help with loans and mortgages along with finding builders and architects. 7. The Leggett Immobilier service package includes after-sales service for customer peace of mind. 22 August 2007 This press release was distributed by ResponseSource Press Release Wire on behalf of Leggett Immobilier in the following categories: Personal Finance, Business & Finance, for more information visit http://pressreleasewire.responsesource.com/about.