July 31, 2021

Only a few weeks left to give money to loved ones tax-free

Until June 30, a temporary scheme allows a sum of money of up to 100,000 euros to be donated to a child, a grandchild and / or a great-grandchild free of gift tax. People without children, grandchildren or great-grandchildren can benefit from this scheme for donations made to their nephews and nieces.

The only condition for taking advantage of the exemption: the sums given must be used within three months of the donation to replenish the capital of the SME of the beneficiary of the donation, to finance the construction of their main residence or to carry out renovation work there. energetic.

Unlike “classic” family donations exempted up to 31,865 euros, this exemption applies regardless of the donor’s age, even if he has already blown his 80 candles.

Cumulative exemption

The amount of the exemption is set at 100,000 euros. This ceiling concerns all donations made by the same person under this temporary mechanism between July 15, 2020 and June 30, 2021, regardless of the number of beneficiaries. Nothing prevents a child from receiving several donations of 100,000 euros from different donors: parents, grandparents, uncles and aunts, etc.

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This exemption is cumulative with the exemption of 31,865 euros applicable to family donations in cash and with the common law allowances renewable every fifteen years: 100,000 euros for a child; 31,865 euros for a grandchild, 5,310 euros for a great-grandchild and 7,967 euros for a niece and a nephew.

On the other hand, it is not possible to benefit from both this temporary exemption and the tax reduction for subscription to the capital of an SME or MaPrimeRenov ‘paid by the National Housing Agency (Anah). for carrying out energy renovation works. We must therefore choose between the two devices.

No exemption for off-plan vehicles

Regarding the main residence, only its construction in the strict sense of the term makes it possible to benefit from the device but not the purchase of an already built property.

The question arose as to whether it was possible to benefit from this advantage for the acquisition of his main residence within the framework of a sales contract in the future state of completion (VEFA).

The tax administration has just answered in the negative, considering that the off-plan purchase could not be assimilated to the construction of a home. Finally, only the construction of a single-family house is likely to give rise to the right to exemption, which assumes that the beneficiary of the donation is the holder of the building permit and the contracting authority.