Roche & Cie

Suppression of the old device “Malraux” with delayed effect from 1 January 2018

For the record, the Finance Law of 2009 conducted a major reform of the investment system “Malraux” by transforming particular deduction under the old regime by a tax reduction on the capped income. This tax advantage granted to investors which was redefined by the Finance Act for 2009 is codified in Article 199 of the CGI tervicies.

This development was achieved without the former regime “Malraux” is completely removed.

This led to the coexistence of two systems “Malraux” : in the case of buildings for which an application for planning permission or a statement of work was filed before 1 January 2009, it is the old device which continues to apply, while the work begun after that date qualify for the new “Malraux”.

Section 118 of the LF 2016 proceeded with the removal of the old device “Malraux”.

It provides, moreover, that the removal of the old device “Malraux” applies to expenditure incurred from 1 January 2018, a nine-year period between the end date of entitlement to the old device “Malraux” (permit application to construct or statement of work filed before 1 January 2009) and the date of repeal of the device.

In other words, the owners of which expenses are still eligible for the old device “Malraux” can still benefit from it until 1 January 2018.

In practice, the old regime imputation “unlimited amount” on the total income of property losses from the specific property restoration costs will be reserved only eligible expenditure until 31 December 2017.