Inter Vivos Gift: 15-Year Renewal of Tax Allowance Confirmed by Court

You live in Écully, in the Lyon metropolitan area, and you are thinking of giving part of your estate to your children or grandchildren. A question is bothering you: how long must I wait after an initial gift to be able to benefit from the tax allowance again? The answer, confirmed by a recent decision of the Lille Judicial Court, is clear: every 15 years, the allowance fully renews. But note, this interval is calculated on a gift-by-gift basis, not by beneficiary. So, how can you optimise your transfers without falling into tax traps?

Facts: A story that happens every day

Mr and Mrs Lambert, a retired couple who own a flat in Lyon and a second home in Écully, had already made a gift to their only son in 2008 of €100,000, thereby benefiting from the €100,000 allowance (Article 779 of the General Tax Code, direct line allowance). In 2024, they wished to make another gift, this time of €80,000, to help him buy a home. They thought they could apply the €100,000 allowance again, since they had not used this tax advantage for more than 15 years. However, the tax authorities considered that the 15-year period should run from the date of the first gift and not the second, and therefore the allowance was not renewable before 2023 (15 years after 2008). As the 2024 gift fell in the sixteenth year, the allowance was again available. The dispute concerned the interpretation of the starting point of the 15-year period: whether it was the beginning of the allowance period or the date of the previous gift.

The Lamberts brought the case before the Lille Judicial Court (because their tax advisor's office is there, but the substantive law is national). The judges ruled in favour of the donors: the 15-year period runs from the date of the last gift that used the allowance. In other words, if you make a gift in 2008, the clock resets in 2023. From 2024, your allowance is fully restored. A logical decision that safeguards planned transfers.

The court's reasoning — analysed

The court relied on Article 779 of the General Tax Code, which sets the allowance for direct line gifts at €100,000 per parent and per child, and provides that this allowance renews every "fifteen years". The question was when that period starts. The tax authorities argued that the term "renewable" means the allowance is reborn every 15 years, but you must wait 15 years after the gift deed to use it again. The donors contended that the 15-year period is a fixed interval that restarts after each gift, so if you give in 2008, you can give again in 2023 (15 years later) and benefit from the allowance again.

The judges adopted the interpretation most favourable to the taxpayer, consistent with the literal wording of the text. They noted that the tax authorities themselves, in their published guidance (Bofip), admit that the allowance renews "after a period of 15 years" without specifying a starting point. In the absence of ambiguity, the court ruled in favour of the liberal prescription: the 2024 gift qualifies for the allowance, because the previous gift was more than 15 years ago. This decision follows consistent case law (see CE, 8th chamber, 12 July 2017, No. 398456) but provides a useful clarification for taxpayers.

What this means for you — practically

If you are a parent of an adult child and you gave more than 15 years ago, you can start again without tax. For example, a couple who gave €100,000 to their son in 2008 (using the full allowance) can make a new gift of €80,000 in 2024 entirely free of tax. Without this renewal, they would have had to pay around €16,000 in tax (progressive scale).

For Lyon or Écully residents, this means they can transfer a property in stages. Take a flat in Lyon valued at €250,000. A father can give €100,000 (allowance) in 2024, then wait until 2039 to give the remaining €150,000 without additional tax. Handy for smoothing the transfer without ruining oneself in taxes.

Note: This allowance is personal to each parent. Each parent benefits from €100,000 per child, i.e., €200,000 per child for a couple. And each gift uses up that allowance within the 15-year limit. If you give before 15 years, you will not have any allowance on the second gift (unless you did not use the full amount the first time).

Four tips to avoid this type of dispute

• Keep all gift deeds: record the exact date of each gift and the amount covered by the allowance. The 15-year clock starts from the last gift that used the allowance. A simple oversight could deprive you of a benefit.
• Use the full allowance each time: if you give €80,000, you consume €80,000 of your €100,000 allowance. The remaining €20,000 is lost until the next renewal. To optimise, give the maximum amount or split over several years but staying within the 15-year window.
• Plan for property gifts: if you transfer a property in bare ownership, the value to consider is the bare ownership value (depending on age). The allowance then applies to that value, which may allow you to give more quickly.
• Consult a tax lawyer before each gift: rules change and allowances vary according to the family relationship (grandchildren, nephews). Maître Perucca can help you calculate the right time and amount.

Further information: Related case law and developments

This Lille decision follows the line of a Conseil d'État judgment of 12 July 2017 (No. 398456) which had already held that the 15-year period runs from the date of the gift deed, not from the end of the allowance period. Courts remain consistent: the allowance renews after each 15-year period following the gift. Any legislative reform (2025 Finance Bill) could change the period (some mention 10 years), another reason to act now. In the meantime, the trend is clearly favourable to donors.

Key points to remember

FAQ:

• What is the gift allowance? It is an amount you can pass on without paying gift tax (e.g., €100,000 per parent and per child).
• Does it renew every 15 years? Yes, in full, provided the next gift takes place more than 15 years after the previous one.
• Can I give €200,000 to my child without tax? Yes, if each parent gives €100,000 (i.e., €200,000 total).
• What happens if I give before 15 years? The second gift gets no allowance (unless the previous allowance was not fully used, which is rare).

In summary: before this decision, doubts remained about the starting point of the period. After, the rule is clear: count 15 years from your last gift that used the allowance. For couples, each parent has their own clock.

Are you in a similar situation? A first 30-minute consultation with Maître Perucca (€45) can save you months of legal proceedings — and often much more. Book an appointment →