Overseas Chambers of Peter Harris

Maison de la Boucterie
Rue de la Boucterie
Saint Saviour
Jersey, JE2 7ZW

The French 2018 Impôt sur la Fortune Immobilière (IFI) campaign is now open.

April 16th 2018

As at Monday 16th April, 2018.

The impôt sur la fortune immobiière: the new French Wealth Tax on immovables and immovable property holding entities.

The first point is to check whether indirectly, you own a direct or an indirect interest in French immovable property through an investment in a company, whether French or otherwise. If so, this will be of interest to you.

If so, you then need to check the market value of the immovable asset at 1st January of this year. If it is over €1,300,000 then you need to take advice and probably action. The rules as to allowability of loans used to acquire the property has changed significantly from the previous Wealth Tax (ISF).

The IFI tax returns for French residents are now "available" on line, at last for those who are able to find them. Use the top search pane on www.impots.gouv.fr.

For the moment, not even the income tax returns containing the IFI lines are available: n° 2042-IFI.

The administration have already confirmed that there will only be one declaration, not two sets, and that those resident taxpâyers who filed an ISF return last year will automatically receive their new form either through the  post, or if they used the on-line facility, it will be automatically carried to their "personal space". Those who have never filed for ISF will have to embark on the French on-line filing system.

The on line reference for the French residents' form is n° 2042-IFI.

There is to be a non-resident form, which is to be used where the non-resident has no other French source income: n° 2042-IFI-COV.  However, there is no link available yet for that form on the website, at present. The French notion of accessibility for those used to a different IT culture and linguisitic compatibility is not the same as elsewhere.

The link to the announcement can be found at https://www.impots.gouv.fr/portail/particulier/questions/comment-declarer-limpot-sur-la-fortune-immobiliere-ifi .

So at today's date, form n° 2042-IFI-COV is not yet actually available on the website, which appears to have got  ahead of itself.

Further comments will be forthcoming once the declaration and notices are available.

Trustees, the 2181 trust2 and IFI:

There has not yet been any sign of the corresponding trustee form replacing the old 2181 Trust2.

Please contact Peter for further information and advice.