top cx logo
cx logo
Explorearrow down
search icon
arrow down

Tax cap on rich to be scrapped

Bouclier fiscal to be axed in latest financial measures, which also tackle wealth tax

THE BOUCLIER fiscal tax cap, which stops people paying more than 50 per cent of their income in tax, is to be scrapped in the latest financial reforms announced today by Prime Minister François Fillon.

The prime minister announced this morning that the bouclier, a flagship election policy of Nicolas Sarkozy, is to be scrapped.

The bouclier had become unpopular with politicians on both the left and right, who see it either as protecting the rich from taxation or an obstacle to wider tax reform.

As well as removing the bouclier, the PM announced that reforms to France's wealth tax (impôt de solidarité sur la fortune) would remove 300,000 households from paying it.

The tax will not be scrapped, said the PM, but future reforms would prevent households from paying wealth tax just because of the increasing value of their house. However the exact mechanisms were not specified.

Households with a value of less than €1.3m will not be subject to wealth tax.
Savings in tax-free Livret A accounts and the assurance-vie of small savers would be spared from extra taxation, announced the PM.

He added that there would be no additional income tax bracket for high earners, nor a capital gains tax on the sale of principal homes.

Jérôme SALORT -

Resident or second-home owner in France?
Benefit from our daily digest of headlines and how-to's to help you make the most of life in France
By joining the newsletter, you agree to our Terms & Conditions and Privacy Policy
See more popular articles
The Connexion Help Guides
featured helpguide
Income Tax in France 2023 (for 2022 income)*
Featured Help Guide
- Primarily aimed at Britons, covers pensions, rent, ISAs, shares, savings and interest - but also contains significant general information pertinent to readers of other nationalities - Overview of online declarations + step-by-step guide to the French printed forms - Includes updates given automatically after this year's site opened
Get news, views and information from France