Roche & Cie

Newsletter Heritage December 2016

Life Insurance : What will change ?

The Sapin 2 law, which was ratified last November 8th, contains a provision concerning the treatment of redemptions on life insurance contracts.

According to article 49 of the Act, the Higher Financial Stability Board (HCSF) will have expanded prerogatives and in particular the power, on the proposal of the governor of the Banque de France, to partially block movements in life insurance, In the case of a ‘ serious threat’ to the financial system for a maximum period of six months.

Withdrawals from investors may be limited, for a maximum period of three renewable months. Such a measure should ensure that in the event of a sudden rise in interest rates, investors will withdraw large amounts of money invested in their life insurance policies for reinvestment in higher-paying investments at the risk of jeopardizing the system.

This article concerns all contracts in progress, evening more than 52 million accounts.

About sixty MEPs and as many LR senators appealed to the Constitutional Council on November 15 on the whole law. For the applicants, this provision would be contrary to the right of property and freedom of contract. The decision of the Constitutional Council is expected by mid-December.

Diagram :

  • Breakdown of households’ financial investments
  • 30% Livret A, Current account
  • 31% Titles
  • 39% Life insurance

Source: French Insurance Federation


A sledgehammer blow on furnished rental ?

The draft, was adopted in Final Reading by the National Assembly on December 5, 2016.

Article 18 of the Social Security Financing Act for 2017 definitively provides for the inclusion in the social security scheme for self-employed persons (RSI) of individuals who derive income from their property leasing activities in excess of a certain threshold, To consider them as income from activities, ie € 23,000 for the provision of furnished apartments

It will be possible to exercise an option to fall under the general scheme at the time of affiliation and the contributions and social security contributions due will then be those of the general scheme. These people will also be able to benefit from the possibility offered in 2018 by the platforms to recover, by mandate, all the contributions from the transactions carried out through it. This option involves applying a 60% reduction in turnover, which leads to a contribution of 18%, taking into account the contribution rates applicable to the general scheme.

In project

  • The Government tabled in PLFR 2016 clarifies the tax classification of income from furnished rentals for income tax purposes. The measure provides that income from a furnished rental business, whether occasional or customary, falls within the category of BICs. This will improve the understanding of the tax.
  • MEPs adopted an amendment to the PLFR to introduce, for online platforms, a duty of automatic declaration (DAS) of the income of their users to the tax administration. However, this measure should not come into force until 1 January 2019 at the request of the Government

How to declare an important money transfer?

A decree clarifying the procedures for reporting large transfers of money has just been published.
Individuals must declare to the Customs, at the time of crossing the border, the sums, cash or securities which they carry to or from a Member State of the European Union, from abroad, from the Principality Monaco, the overseas territories, the territorial communities of Mayotte and Saint-Pierre-et-Miquelon transfers of capital of at least 10,000 € (Article 1649 quater A of the CGI). The same provisions shall apply to postal items.

Law 2016-731 of 3 June 2016 reinforced the conditions for the validity of the declaration of capital transfers.

The declaration shall be considered as non-existent if the information contained therein is incomplete or incorrect.

For declarations of transfers of capital of more than € 50 000, documents must also be attached to justify the origin of the sums. (Document relating to real estate sales transactions, transfers of securities, gifts, proof of winnings to games, contracts or a sales invoices.

Failure to comply with the declaration obligation is punishable by a fine equal to 50% of the sums and confiscation of sums.


You can download the note here


Edited by Muriel Brault, Graduated Notary.
Cabinet Roche & Cie, Chartered Accountant in Lyon.