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The French government is working on two proposals to (1) extend the period to pay French inheritance tax (AN, Prop. L. No. 4679, Nov. 16, 2021) and (2) reduce some of the inheritance tax ( AN, Prop.L.No.4886, Jan 11, 2022)   

 1- Article 641 of the CGI would be amended so that the deadline for the payment of inheritance tax will be extended to one year, while the obligation to file the IHT form is maintained at 6 months. The loss of revenue for the Government, due to the absence of interest over the period of six months (when the deceased was French resident), would be compensated by the creation of an additional tax set out in Articles 575 & 575 A of the Tax Code.   

 2 - Article 764 bis of the CGI (which provides for a reduction of 20% on the real market value of the main residence of the deceased) would be abolished. An article 793-0 bis would be created to exempt the payment of inheritance tax on the main residence, after the first death, if the property constitutes the deceased's main residence and is occupied, at the same time, by the surviving spouse or registered partner.   

 The tax allowance for the benefit of grandchildren would be increased from 31,865€ to 100,000 € by an amendment to article 790 B of the Tax code.   

 The tax reminder period for donations provided in article 784 of the tax code would be reduced from 15 years to 6 years.

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