As part of the finance bill, an amendment proposes to increase the amount of the reduction for heirs concerning inheritance taxes. Indeed, on October 24, this proposal was adopted, but in the event of appeal 49.3, it is likely that it will not hold. Find out what this amendment provides.
The 2025 finance bill, MPs have the opportunity to participate in the construction of the law. This is how on October 24, the deputies of the National Assembly voted on two interesting amendments aimed at reducing inheritance costs by increasing the tax allowances applied as part of a donation. The objective of these proposals is to facilitate the circulation of money between different generations. MEPs believe that the hoarding constitutes a brake on the economic growth of France. Let us remember that the inheritance fees for direct heirs benefit from a reduction of €100,000, but the new amendment wants them to increase to 120,000. We explain everything to you in detail.
Good or bad news for the heirs?
Towards a new tax reduction threshold
Currently, direct heirs benefit from a reduction of €100,000 for which their inheritance escapes taxes. Depending on the are inheritedthe scale per bracket applies with a imposition ranging from 5 to 46%. However, a parent has the option of leaving a certain amount to each child every fifteen years without having to pay gift fees. According to a notary, there is an ideal age to pass on assets to your children without cost.
Increase in tax relief
The first amendment adopted by the deputies of the National Assembly concerns the increase intax deduction applicable to donations between parents and children. At the moment it stands at €100,000, but the amendment wants it to increase to €120,000. If you pass on assets worth €150,000 to your children for example, only €120,000 will be taxable based on the new amendment. In fact, this proposal aims to promote direct line transmission. Currently, France is one of the countries which applies tax rates of up to 45% to direct successors.
What is the point of this measure?
Concretely, the amendment will allow the early transfer of assets while favoring intergenerational mobility of capital. Thanks to this measure, a part of the heritage will be released earlier, allowing different generations to invest and develop an increased capacity to consume. On the other hand, this bill will strengthen the purchasing power young generations and to direct capital towards people capable of adding value to it, indicates MoneyVox.
Anticipation of the transmission of assets before age 70
As you told us, the deputies of the National Assembly voted two amendments and the second concerns the anticipation of the transmission of life insurance contracts funded before the age of 70. If this amendment is retained, it will be possible to transmit €152,500 to whoever wishes, provided you have funded your insurance contract before the age of 70. In reality, it is a way of anticipating inheritance and if there is no maximum amount to put in life insurance, the situation is reversed in the context of a donation.
Encouragement of the circulation of savings
Creating a new tax
The amendment concerning the increase in the reduction would be financed by “the creation of a additional tax to the excise on tobacco. However, its adoption is uncertain and we must wait for the end of the discussions or the putting forward of recourse 49.3. This recourse gives the government the possibility of imposing its text and sorting out the amendments proposed during the session.
Boosting household consumption
The second amendment explains that the overall savings of the French are worth 6 billion euros, or double the public debt. It seems that 2/3 of this sum is placed in savings (savings account, life insurance) or is sleeping in the bank accounts. Likewise, their capacity to put the economy back on track is little exploited. Thanks to the implementation of tax tools encouraging the facilitation of savings, things could change.
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