As we come to the end of the year, we wanted to share a brief reflection on what has been a challenging but ultimately rewarding period for investors.

It’s been another unusual year (I think I wrote that in my last Christmas newsletter!!). We began 2025 with talk of a Trump tariff driven recession, interest rate cuts and the end of US dollar dominance. Instead, growth has slowed but not collapsed, interest rates have stayed higher for longer, and after weakening early in the year, the US dollar has strengthened again in the second half of 2025.

Equities experienced volatility along the way, driven by geopolitics, policy changes and concerns around inflation. Despite this, strong company earnings — particularly in technology and AI — helped global markets finish the year close to record highs. This was a reminder of the value of staying invested through short-term uncertainty.

Bonds quietly did their job. While yields rose earlier in the year, they provided attractive income and stability, reinforcing their role as a key diversifier within portfolios.

Gold stood out as a strong performer, offering effective protection against geopolitical and economic uncertainty while contributing positively to returns.

Overall, 2025 reinforced an important lesson: diversified, multi-asset portfolios can help investors navigate uncertainty and capture long-term opportunities — even in unsettled markets.

You’ll see below a chart showing the ARC Euro Indices for this year; the movements reflect the periods of volatility investors experienced, especially post ‘Liberation Day’ followed by a recovery as confidence improved.

It’s a helpful visual reminder that while markets rarely move in a straight line, staying invested through the ups and downs has historically been key to achieving long-term outcomes.

As we head into the festive season, I’d like to thank you for your continued trust and wish you and your family a very happy Christmas and a healthy, prosperous New Year.

I will be back in touch in January with a financial outlook for 2026 following our next annual Spectrum conference and, of course, I plan to continue to provide you with updates, developments and new support tools over the year ahead…

A présent d’usage is a customary gift given on a special occasion and of modest value, in proportion to the donor’s wealth and income.

In plain terms, it’s a gift made for a particular event – like a birthday, wedding, graduation, Christmas, or another significant celebration – and it must not be large enough to affect the donor’s financial situation.

If those two conditions are met, the gift is not subject to gift tax and does not need to be declared.

Legal definition and principles:

French law doesn’t specify a fixed euro amount. Instead, courts and tax authorities judge “modest value” relative to the donor’s means.

Key references:

• Article 852 of the Code civil
• Article 784 of the Code général des impôts (CGI)
• Various rulings of the Cour de cassation (French Supreme Court)
• The tax administration (BOFiP-ENR-DMTG-20-10-20-10 § 10) says that the assessment depends on: “la fortune du donateur et les usages” — the donor’s wealth and customary practice.

When it stops being a “présent d’usage”:

The gift ceases to qualify and becomes a taxable donation if:

• The value is disproportionate to the donor’s income or assets.
• It’s not linked to a special occasion.
• It’s intended to transfer wealth permanently (not symbolic).
• The donor gives multiple large “presents” that together look like a disguised donation.

If the tax administration audits and decides it’s really a “donation déguisée,” they can requalify it and apply the 60% gift tax (if between non-relatives).

Practical rule of thumb.

1. Principle

As noted earlier, there’s no fixed ceiling — it depends on whether the gift is modest relative to the donor’s wealth and income and is tied to a special occasion (birthday, wedding, graduation, etc.).

For guidance, notaires and tax authorities often use informal rules of thumb when advising clients.

2. Typical “reasonable” range (for €500,000 income)

If the donor earns about €500,000/year and has assets consistent with that income, a gift of roughly 1–2% of annual income would often be viewed as proportionate for a major occasion.

That works out to:

€5,000 to €10,000 for a standard event (birthday, graduation, wedding present, etc.)

Possibly up to €20,000 or so for a very special event (e.g. child’s wedding, milestone anniversary) — but that’s at the high end and should clearly match the occasion.

3. Key conditions to stay within “présent d’usage”

To keep it safely tax-free:

Occasion-based: The gift is clearly tied to a socially recognized event (wedding, birthday, graduation, etc.).

Proportionate: It doesn’t change the donor’s lifestyle or deplete assets.

Customary: It’s the kind of thing people of similar means might reasonably give.

Documentation: It’s helpful to note (privately) what the occasion was and the donor’s income level, in case of audit. There’s no need to declare it if it’s truly a présent d’usage.

4. When to get advice

If the amount goes well above 2–3% of income (say, >€15,000–€20,000 on €500,000 income) or there’s no special occasion, a notaire or fiscaliste should review it. The tax office could otherwise requalify it as a donation taxable at 60% (for non-relatives).

Deposit limit protection increase

From 1 December 2025 the Financial Services Compensation Scheme (FSCS) deposit protection limit will rise to £120,000. This means that if you hold deposits or savings with a UK-authorised bank, building society or credit union and it goes out of business, FSCS will compensate you up to the new limit of £120,000 per eligible person, per authorised firm.

The FSCS also covers temporary high balances, which will also rise from December, of up to £1.4 million. These may occur from major life events, such as selling a home or receiving an inheritance. Temporary high balances are protected for up to six months.

There are some details to be aware of:

• The additional compensation limit is per person, per qualifying life event. For joint accounts with a temporary high balance, each named person benefits from FSCS protection of up to £1.4m.
• The protection begins on the date the money becomes legally transferable to you, or from when it is first credited to your account (or to a solicitor’s client account for onward payment to you). You can move the funds to another account in your name and maintain the protection, but the six-month period would not begin again.
• Proceeds from the sale of second homes or buy-to-let properties are not covered. If your temporary high balance exists because of a real estate transaction, it must relate to your main residence for FSCS protection to apply.
• Compensation is unlimited for temporary high balances that relate to personal injury, disability or incapacity claims.
• FSCS will pay compensation when certain requirements set out by the UK’s financial regulators are met.

Qualifying life events and evidence required

A range of life events could create a temporary high balance in your bank account, including:

• Real estate transactions (property purchase, sale proceeds, equity release – this doesn’t have to be a UK property but must relate to your main residence).
• Benefits payable under an insurance policy.
• Personal injury compensation.
• Disability or incapacity (state benefits).
• Claim for compensation for wrongful conviction.
• Claim for compensation for unfair dismissal.
• Redundancy (voluntary or compulsory).
• Marriage or civil partnership.
• Divorce or dissolution of a civil partnership.
• Benefits payable on retirement.
• Benefits payable on death.
• A claim for compensation in respect of a person’s death.
• Inheritance.
• Proceeds of a deceased’s estate held by a personal representative.

To verify the source of funds for a temporary high balance, the FSCS may ask for evidence which could include (but not be limited to) the following: 

• A property sale receipt or agreement.
• A court judgement.
• A will.
• A letter from an insurer regarding an insurance payout.
• A letter from a lawyer, conveyancer, mortgage provider, former employer, or pension trustees.
• Court orders.
•  Social security statements.
• Probate / letters of administration.
• Death / marriage certificate.
• Land registry and HMRC records.

This list isn’t exhaustive, and the evidence needed will depend on your individual circumstances. If you provide the relevant supporting evidence and your claim is eligible under FSCS rules, compensation is payable within three months.

Why are the limits being increased now?   

The previous protection limit was established in 2017, when the UK was a member of the EU. Following Brexit, regulatory control has returned to the UK, whilst inflation since 2017 has reduced the real value of the original limit. As a result, the FSCS has increased the protection level to ensure it remains equivalent in value to that provided in 2017.

While this increase is welcome, maintaining substantial cash balances in a bank account is generally not advisable over the medium to long term. We would be pleased to advise you on tax-efficient investment options for any surplus deposits you may hold.

Autumn has officially arrived in France. The clocks have gone back, the air is cooler, and whilst grey, rainy days have set in, we can still look forward to the occasional burst of sunshine. November may be one of the shorter months, but before preparations for the end-of-year festivities begin, there are several important matters to keep in mind

Although the taxe d’habitation has become a thing of the past for most French residents, it still applies to owners of second homes in France. Over four million households are liable for either the Taxe d’Habitation sur les Résidences Secondaires (THRS), the Taxe sur les Logements Vacants (TLV), or the Taxe d’Habitation sur les Logements Vacants(THLV).

The Taxe d’Habiation statements should now be available in your online account on impots.gouv.fr, where you will also find the payment details and deadlines.

On 25th October, the French deputies voted to amend the draft finance bill that was proposing to freeze the income tax rates, instead voting in favour of re-establishing indexation in line with inflation which increases current tax bands by 1.1%. Below is a table showing the 2025 thresholds compared with the proposed thresholds for 2026.

Once the finance law is officially adopted at the end of the year, I will confirm these thresholds.

If you are subject to Wealth Tax on Property (IFI) and the amount due is €300 or less, this must be paid by 17th November by cheque, cash or bank card or by the 22nd November if you pay online. If the amount is more than €300, it must be paid online via the impots.gouv.fr website.

By now, you should have received your income tax statement and paid tax due. If you have discovered any errors or miscalculations, please correct them as soon as possible as after 3rd December 2025 you will no longer be able to submit an amended tax return on the impots.gouv.fr website; any corrections after this date must be submitted in paper form.

If you have a PEL account which was opened between 2011 and 2015, your bank will automatically close it and transfer the funds to another savings account. PELs opened since 1st March 2011 can be held for a maximum of 15 years, whereas the PELs opened before this date can remain open indefinitely. According to the Banque de France, the average balance of a PEL account is €25,017, with around 12% of such accounts exceeding the maximum capital limit of €61,200. These accounts are not term accounts and should only be used if you plan to purchase a property or carry out renovations to your property.

If you do seasonal lettings, you will have received an email from the tax office reminding you that the tax rules have changed in 2025. For “meubles de tourisme non classés” if your income in 2023 and 2024 was more than €15,000 you can no longer stay as micro-BIC. The income that you received will be under the “régime réel” and will require the assistance of an accountant. You should contact your tax office for more information.

Urssaf also sent an email to remind those who earned over €23,000 from their season lettings that they have to pay social security contributions on this income and not social charges like other landlords. Depending on your turnover, you can opt for the micro-social regime at either 21.2% (for meublés de tourisme non classés) or 6% (for meublés de tourisme classés). From 2027, website-based business as Airbnb and Arbitel will take the social contributions directly at source.

If you have any questions on the above or any other matters, please do get in touch. I am available for online meetings or face to face meetings throughout November, so if you have any questions about your finances, please do contact me to arrange a free, no obligation, meeting.

Thinking of moving to Europe… or already living the expat life in France?

Welcome to Where Money Talks.

Le Tour de Finance brings together expats, advisers and finance professionals for relaxed, practical and interactive sessions on tax and financial planning in France. The event is designed for people who want to live well, feel secure and plan smartly while navigating French-resident tax regimes, Assurance Vie, pensions, investment markets and estate planning.

Two exceptional venues, two great days of connection
Over the course of our recent tour we gathered over 70 participants across two beautifully located events. Day one took place at Château Val Joanis near Pertuis (Vaucluse) — nestled in the Luberon region, a scenic estate of vines, olive trees and renowned terraced gardens.

Day two followed at Château de la Bégude in Valbonne on the Côte d’Azur,  a 17th-century manor within a peaceful golf-estate setting between Valbonne and Opio.

The atmosphere throughout was warm and interactive: in both venues attendees were able to enjoy breakout conversations, mingle in the gardens, and engage in meaningful Q&A with the presenters. More than just formal lectures, the days offered an opportunity to ask real-life questions, share experience with fellow expats, and take away actionable next-steps in a friendly setting.

Speakers & professional insight
We were pleased to host a strong panel of trusted advisers and finance practitioners including representatives from The Pru, The Spectrum IFA Group, Currencies Direct, Brewin Dolphin and Novia Global. These experts guided discussions through key issues such as tax-efficiency for French-resident expats, UK/France pension interfaces, the role of Assurance Vie, foreign exchange and currency strategies, investment markets and legacy/estate planning. Having all these viewpoints in one place meant attendees could begin to build a rounded understanding – rather than piecemeal advice.

Living in France as an expat — why planning matters
Living abroad in France brings many rewards – lifestyle, weather, culture, international community, but also distinct financial and tax responsibilities. Becoming tax-resident in France triggers a range of rules on income, inheritance, assets and investments. Without careful planning, the complexity can lead to missed opportunities or unintended liabilities. Time and again during the event we heard how proactive planning with professionals makes the difference: understanding the French tax treaty framework, choosing the right investment wrapper (such as Assurance Vie), considering currency exposure, and aligning UK/France pensions and inheritance.

Equally important is the personal dimension: being able to relax, knowing your financial affairs are in order, and being part of a network of like-minded expats. That sense of community and shared experience was very evident across both days of Le Tour de Finance.

Thank you & next steps
A heartfelt thank-you to everyone who attended and to our presenters for their clarity and engagement. If you couldn’t join this round, keep an eye on our website for future events, and feel free to get in touch to explore how tailored advice might support your personal expat financial journey. Because when you’re living abroad, planning ahead matters – and getting the right help makes all the difference.

As an expat, do you make the most out of your finances?

Are you an expat living in France, or considering the move? Managing your finances across borders can feel daunting – tax rules, inheritance laws, pensions, investment accounts… there’s a lot to get right. That’s exactly why we’re inviting you to Le Tour de Finance – two dynamic, expert-led seminars designed to guide expats like you through the ins and outs of financial planning in France.

Each event features a panel of financial specialists who will break down complex topics like Assurance Vie, cross-border tax obligations, pensions / QROPS, investment opportunities, estate planning, and more. Whether you’re already in France, or planning to relocate, these sessions will help you safeguard your wealth, optimise your tax strategy, and make confident decisions for the future.

When:

• Chateau Val Joanis, Pertius, 84120 — 21st October 2025
• Chateau de la Begude, Valbonne, 06560 — 22nd October 2025

Two convenient locations, same powerful content. The format combines expert presentations with opportunities to ask questions, network with other expats, and hear real-world insight from people navigating similar paths.

Why attend?

Because doing your financial planning well as an expat isn’t just about avoiding mistakes—it’s about gaining advantages. With the right advice, you can reduce your tax burden, ensure your investments are legal and efficient on both sides of the border, and protect your family’s future.

Space is limited. If you’re serious about making the most of your finances in France, these seminars are not to be missed.

Register today via Le Tour de Finance, and give yourself peace of mind – so your money works as hard as you do.

France has a new prime minister (again), actually – no we don’t – another one gone! However, time is of the essence to ensure that the Finance Law is approved and passed into law by the end of the year. Prior to the government reshuffle, there was a plan to freeze the tax rates at their current level and not adjust them in line with inflation as has been done in the past few years.

There was also a plan to set the 10% abatement on pensions at a maximum of €2000 per pensioner rather than the current maximum of €4399. Whether these measures will be adopted into law by the end of year, only time will tell.

According to a study published by the French National Statistics Body (INSEE, Focus 354), in 2024, 78% of French residents have a Livret A Savings account, compared with 42% who have an assurance vie and 27% that have a property savings plan (PEL/CEL). Only 19% of French residents have a retirement account (PER) and only 16.5% are part of an employer’s savings plan. Clearly the French prefer to keep their investments in assurance vies rather than in share accounts since only 9.8% of French residents have PEAs and only 9.6% have ordinary share accounts (compte titres). With the interest rate for the Livret A now at only 1.7%, this means that a large amount of French savings is not protected from inflation. Since money in an ordinary share account is subject to both tax and social charges, it is more tax efficient to invest in either an assurance vie or a PEA.

This autumn child care benefits (“complement de libre choix du mode de garde” or CMG) are changing. The CMG is a family benefit which covers part of the costs of a child being looked after by a carer (assistante maternelle) or at home by a nanny employed directly by the parents. This benefit is being amended in order to better assist families in certain situations. From 1st September 2025, the amount of this benefit will also change. In particular, single parents can now receive CMG until their child is 12 years old instead of 6 years old previously. From 1st December 2025, for parents with shared custody of their child, each parent can receive CMG under certain conditions. The calculation of the amount of benefits will be done automatically by Urssaf on the Pajemploi website and families will be informed of the new amount of benefits they will receive in the September 2025 declaration.

Most people will have noticed an increase in their tax foncière of 1.7% due to the annual revaluation of the rental value which is the basis on which this tax is calculated.

There may also be an additional increase if your local council has voted for one. Other subsidiary taxes such as the tax to manage aquatic areas and the prevention of flooding may also have increased in certain areas. As for the tax for the refuse collection, a table produced by the Environmental and Energy efficiency (Agence de l’environnement et de la mâitrise de l’energy) published in Le Monde newspaper on 25th August showed that more than half of local authorities charge more than what it actually costs them to collect and treat the rubbish. If your tax foncière seems excessively high this year, it may be worth raising this issue with your local council.

If you have any questions on your financial situation in France, or know someone who does, please do get in touch and I would be happy to arrange a free, no obligation, phone or video call.

The latest stages of Le Tour de Finance brought together investors, financial experts, and international residents for two highly successful events that highlighted the importance of planning, transparency, and trusted advice. Both gatherings were very well attended, with participants eager to engage, ask questions, and share experiences in an open and interactive setting.

Across the two days in Granzay-Gript and Cognac, our expert panel delivered insightful presentations covering key topics such as pensions, investments, tax planning, estate structuring, and regulatory changes that affect expatriates in Europe. The sessions were designed to provide practical, up-to-date knowledge and were followed by lively Q&A discussions. Attendees made the most of the opportunity to ask specific questions relevant to their own circumstances, sparking valuable exchanges and deeper understanding.

We would like to extend our sincere thanks to all the partners; RBC Brewin Dolphin, Novia Global, The Prudential and Currencies Direct, whose ongoing support ensures the continued success of Le Tour de Finance. Their expertise and commitment to providing clear, professional guidance is at the heart of these events. We are also deeply grateful to the venues and hosts, who created such a welcoming and professional environment for our community.

Most importantly, we would like to thank all of the attendees who joined us. Your engagement and thoughtful questions helped make these events so dynamic and rewarding. The high level of interaction reflects the genuine need for clear, reliable information in the ever-changing world of financial planning.

As Le Tour de Finance continues, we look forward to building on this momentum and bringing more valuable insights to international residents across Europe. We are proud to provide a trusted platform where people can connect directly with experts and gain clarity for their financial future.

Join our expert panel

Wednesday 24th September

6pm – 7pm UK time

Karen Tait – Host and Presenter
Lisa Greene – French property expert (LEGGETT Immobilier Intl)
Jonathan Watson – Currency Specialist (LUMON)
Paulette Booth – Insurance expert (AXA International)
Tracy Leonetti – Relocation & French admin expert (LBS in France)
Sharon Revol – Mortgage expert (Cafpi)
Peter Brooke – Tax and Wealth Expert (The Spectrum IFA Group)

Join our live webinar about moving to and living in France.

Speak to the experts about the property buying process in France, currencies transactions, insurance, the relocation paperwork…, mortgages in France, plus the all important financial and tax questions about moving to France.

Sign-up to the webinar – and if you have some specific questions, enter them on the form and our panel of experts will do their very best to answer your questions during the webinar on Wednesday 24th September