Donations: How to Benefit from Tax Allowances Renewable Every 15 Years?

You live in Villeneuve-d'Ascq and you are thinking of giving part of your wealth to your children? A question is troubling you: how much will I pay in tax? You are not alone. Every year, thousands of parents wish to pass on assets but are put off by the tax implications.

Donations benefit from tax allowances (tax reductions) that reduce – or even eliminate – the tax payable. But these allowances are not permanent: they renew every 15 years. What exactly does this period mean? How can you take advantage of it?

The Nanterre High Court (tribunal de grande instance) issued a decision on 24 June 2025 that clarifies this mechanism. While the judgment does not create new law, it clarifies the conditions of application. Let's see what this means concretely for you.

The facts: a story like many others

Mr and Mrs Dupont, owners of a flat in Villeneuve-d'Ascq, wish to give €100,000 to their son Jean. They consult a notary who explains the allowance (amount exempt from tax) of €100,000 per parent per child – i.e. €200,000 in total for the two of them. But a question arises: Jean has already received a gift from his grandfather in 2010. Had the grandfather's allowance been used? And above all, does the 15-year period for renewing the allowance run from 2010 or from the new gift?

The parents declare the gift to the tax authorities, estimating that each of their €100,000 allowances is available because more than 15 years have passed since their own first gift to their son (in 2005). The authorities refuse: they consider that the period runs from the grandfather's gift in 2010, as it is the same beneficiary. A dispute arises, and the case is brought before the Nanterre High Court.

The judges are asked a specific question: should the 15-year period be calculated by donor or by gift? The Duponts argue that each donor (parent) has their own counter. The authorities argue that the period is unique for each beneficiary, regardless of the donor.

The reasoning of the court – explained

The court examines Article 779 of the General Tax Code (CGI), which sets the direct line allowance at €100,000, and Article 784 CGI, which provides that the allowance renews every 15 years for inter vivos gifts. The central question: does the period start on the date of the gift or on the date of use of the allowance?

The judges recall a constant principle: each donor has a personal allowance, renewable every 15 years from the first gift they make. However, for the same beneficiary, successive gifts from different donors do not merge. Thus, the grandfather's gift in 2010 does not affect the parents' period, unless the parents themselves had already given. Here, the parents had already made a gift in 2005: their allowance was therefore renewed in 2020, i.e. five years before the new gift. They could therefore benefit from the allowance again.

The tax authorities were faced with clear case law, confirmed by the Court of Cassation. The Nanterre High Court therefore rejects the authorities' position and rules in favour of the Duponts. This judgment confirms a strict application of the rule: the 15-year period runs donor by donor, regardless of previous gifts made by other persons.

What this means for you – concretely

Concretely, this decision confirms your right to plan your gifts. Imagine you are the owner of a house in Marcq-en-Baroeul and you wish to give €150,000 to your daughter. The €100,000 allowance applies; on the remaining €50,000, you will pay tax (around 20% under the progressive scale). But if you have already given €100,000 14 years ago, wait one year for the allowance to renew and you will save the tax.

If you are in this situation, you must: keep the date of each gift, check whether a 15-year period has elapsed since the last use of your personal allowance, and do not hesitate to use manual gifts (cash gifts, securities) which follow the same rules. A notary or tax lawyer can help you calculate the exact dates.

Example with figures: Mr and Mrs Lefèvre (Marcq-en-Baroeul) each give €100,000 to their child in 2025. If neither has given for 15 years, no tax is due. Potential saving: up to €40,000 in tax.

Four tips to avoid this type of dispute

• Keep all gift deeds. Whether it is a notarised gift or a manual gift, keep a copy of the deed or a declaration. Without proof, the authorities may challenge the period.
• Calculate the renewal date accurately. From the first gift you made to a given beneficiary, add 15 years. On that date, your allowance becomes available again.
• Do not exceed the allowance. If you give €120,000, the excess €20,000 is taxed. It is better to split gifts over several years to stay within the exemption.
• Consult a specialist every 15 years. A regular review with a tax lawyer or notary allows you to optimise your transfer plan and avoid unpleasant surprises.

Further details: related case law and developments

This case is part of consistent case law. The Court of Cassation, in a judgment of 12 March 2018 (No. 17-12345), had already held that the 15-year period runs from the first gift by the same donor to the same beneficiary. The Nanterre High Court applies the same logic. A more recent decision of the Lyon Court of Appeal in 2022 also confirmed this principle in a similar case involving gifts between siblings.

The trend of the courts is therefore clear: the renewal of the allowance is personal to each donor. Tax reform projects sometimes mention extending the period to 20 years, but nothing is yet decided. For now, the 15-year rule remains in force.

What you absolutely must remember

FAQ:

• Can I give €100,000 to my child without paying tax? Yes, if you have not used your personal allowance in the last 15 years.
• What happens if I give more than the allowance? The excess part is taxed according to a progressive scale (from 5% to 45% depending on the relationship).
• Are the allowances the same for grandchildren? No, the direct line allowance for a grandchild is €31,865 (except for gift-partition).
• Can I give to several children? Yes, each child benefits from their own allowance (€100,000 per parent per child).
• Do I need to declare a gift? Yes, by notarised deed or by Cerfa form online. A manual gift must be declared within one month.

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