Geopolitics and Oil Prices

Over the past couple of weeks I’ve received a number of questions from concerned clients about the latest geopolitical developments and what they might mean for markets.

Whenever headlines become intense, it can understandably feel as though something dramatic must be happening in financial markets as well. The reality is often more nuanced — and this appears to be one of those moments.

In 30 seconds

Markets have reacted to rising geopolitical tensions, but the moves so far suggest caution rather than panic.

The key variable investors are watching is energy prices. Historically, bear markets tend to be linked to recessions, and the main risk from the current conflict is whether sustained oil price increases could slow economic growth.

Equity markets have moved lower, although declines have been relatively contained. Across developed markets, equities have generally fallen between 2% and 6%, while emerging markets have seen slightly larger pullbacks due to their greater reliance on imported energy.

Safe-haven assets have also seen some demand. The US dollar strengthened, while gold briefly rose above $5,400 per ounce before easing again.

Despite dramatic headlines, the overall reaction has remained relatively orderly. As LGT Wealth Management noted in a recent update:

“While the headlines have been dramatic, market moves so far suggest investors are reacting with caution rather than panic.”

Interestingly, much of the volatility has occurred beneath the surface of markets. The Rathbones multi-asset team recently highlighted that while headline equity indices have only fallen around 3–4%, there has been significant rotation between sectors and individual stocks.

Chris Saunders of New Horizon Asset Management also notes that the conflict is beginning to affect other parts of the global economy. Disruptions to Iranian production have tightened fertiliser markets, pushing prices higher and raising the possibility that food prices could also rise in the months ahead.

One of the main channels through which geopolitical events can affect economic growth is energy prices. Economists often use a simple rule of thumb: every $10 increase in oil prices can add roughly 0.3% to inflation and reduce economic growth by a similar amount.

With current expectations for US economic growth around 2.2%, oil prices would likely need to rise well above $120–$130 per barrel and remain there for a sustained period before recession risks became materially elevated.

At present, prices remain below those levels.

However, as Chris Saunders notes, the key variable may be how long the conflict continues, as prolonged disruption to Middle Eastern energy supply could delay interest-rate cuts and keep inflation pressures elevated.

As one Rathbones portfolio manager noted in a recent discussion:

“What was a good company before the weekend is still a good company afterwards. The share price may now be lower — which can create opportunities.”

Similarly, the investment team at Atomos emphasised that predicting short-term market movements during geopolitical crises is extremely difficult, reinforcing the importance of maintaining diversified portfolios designed to withstand periods of uncertainty.

Energy shocks can also accelerate structural change. Previous crises — including Europe’s energy shock following Russia’s invasion of Ukraine — helped accelerate investment in renewable energy, batteries and alternative energy systems.

Key Insights

• Markets have reacted with caution rather than panic despite dramatic geopolitical headlines

• Oil prices remain the key variable investors are watching

• Historically, bear markets are far more closely linked to recessions than geopolitical events alone

• Current oil prices remain below levels historically associated with recession risk

• Maintaining a disciplined, diversified investment strategy remains the most effective approach during volatility

In Summary

Geopolitical developments will inevitably continue to evolve over the coming weeks. However, markets so far appear to be adjusting rather than overreacting.

History repeatedly shows that while headlines can move quickly, markets often prove more resilient than expected.

I hope you found this update interesting and helpful.

If anything has raised questions for you, or you’d simply like to talk something through, please don’t hesitate to get in touch. That’s exactly what I’m here for.

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What do I need to know?

I hope this newsletter finds you well; So, pensions are back in the spotlight as governments in the UK and Ireland introduce meaningful changes that could affect how individuals and business owners save for retirement. In this edition, we break down what’s changing, why it matters, and what you should be thinking about next.

Should Expatriates Keep Paying UK NI Contributions After 2026?

As you may have seen in the recent UK budget from April 2026, most expatriates will no longer be eligible to pay Class 2 National Insurance Contributions (NICs) and will instead need to use Class 3 contributions which cost more — but this still may offer an excellent return on investment.

The ruling states:

“From 6 April 2026, individuals will no longer be able to pay voluntary Class 2 NICs for periods abroad. Only voluntary Class 3 contributions will be available for tax years 2026 to 2027 onwards.

This change does not affect any voluntary contributions that can be paid for periods abroad before 6 April 2026 – there is more detail here

What you should do next

• Check your State Pension forecast – you can do this here: you will need a Government Gateway ID for the online system OR can contact them here
• See how many missing years you have
• Confirm that you’re eligible for Class 2 NI Contribution for previous years living abroad – check here
• Consider topping up those years at the lower cost Class 2NICs

If you’d like help interpreting your forecast or reviewing your eligibility for Class 2 vs Class 3 contributions, feel free to share the summary or screenshots — I’ll walk you through the options.

The ruling also states that “New applications to pay voluntary Class 3 NICs will need to have either”

• lived in the UK for 10 years in a row
• paid at least 10 years of National Insurance contributions while in the UK

What remains unclear is whether contributions paid for whilst abroad will count towards the 10 year rule and whether it is therefore sensible to pay for missing years before April 2026 to ensure you have 10 qualifying years so that you will be eligible to pay future years.

It certainly appears that long term non-UK residents, without 10 years of NICs, could be “locked out” of the system from April.

You generally need 35 qualifying years of National Insurance contributions to receive the full UK State Pension. That’s why it’s important to know three things:

1. How many qualifying years you already have
2. How many past years you can still buy back (at Class 2 rates until April 2026, if eligible)
3. How many future years you still have before reaching State Pension age

Once you understand these three numbers, you can work out exactly how many additional years you might need. And remember: you may not have to pay for every remaining year at the higher Class 3 rate after April 2026.

Many expatriates will reach the 35-year mark using a combination of existing contributions, cheaper buy-back years, and only a small number of future payments.

Government Gateway tip:

To log in, you need to receive a security code by text message. If you change your mobile number, make sure you update it with HMRC before you lose access to the old phone number. Otherwise, you may be locked out of your Government Gateway account and unable to view your State Pension record.

Why this decision matters

If you expect to remain an EU resident during retirement, there are often strong long-term reasons to transfer your pension out of Ireland; (I cant cover this in this newsletter but contact me if you want more information).

Because of this, it is crucial that whatever happens to your pension today does not restrict your ability to make that transfer in the future.

• Moving your pension into a PRSA can, in most cases, limit or block your ability to transfer the pension out of Ireland at a later date, which can unintentionally reduce your planning flexibility.
• A Master Trust may offer better long-term portability — but only if the trust deed specifically permits future overseas transfers.

Our role

We help clients:

• • Analyse their current Irish pension structure

• Confirm whether future overseas transfers will remain available
• Ensure the chosen structure supports your long-term retirement strategy, not just short-term compliance

Personalised Guidance?

If you hold — or think you may hold — an Irish Executive Pension, reply to this email or click here to schedule a consultation.

We’ll ensure the restructuring supports your long-term financial interests, rather than simply following administrative defaults.

A practical solution: International SIPPs (Self Invested Personal Pension)

Your UK pensions can still be actively and professionally managed by a local adviser by transferring them to an International SIPP. This can also allow you to consolidate multiple pension pots into one, making your retirement planning far simpler.

An International SIPP can provide:

✔ Access to regulated advice
✔ Better consolidation and control, including currency options
✔ Potentially lower fees
✔ A flexible investment approach aligned to your residency and long-term goals

If you have a UK pension and live abroad…

You don’t need to leave your pension un-managed. Send us your pension information and we’ll assess whether an International SIPP could allow us to advise you properly and optimise your retirement planning.

Just to recap…

Important pension changes are now underway across the UK and Ireland and for many expatriates and business owners these changes create both risk and opportunity.

• From April 2026, most expatriates will no longer be able to pay low-cost Class 2 UK National Insurance, making it more expensive to build State Pension entitlement in future. Checking your record and filling any gaps early could significantly improve your lifelong retirement income.
• In Ireland, older executive pension schemes are being forced to restructure under IORP II, by April 2026. The choice between a PRSA and a Master Trust is not just administrative — it can directly affect your ability to transfer your pension abroad in the future.
• For those holding UK private pensions while living abroad, access to advice and suitable structures has become more restricted since Brexit. In many cases, an International SIPP now offers the most practical way to regain control, consolidate pensions, and receive ongoing professional management.

Across all three areas, the key message is the same: early decisions have long-term consequences. A short review today can protect flexibility, reduce future costs, and strengthen your retirement position.

If any of these changes affect you, we encourage you to get in touch. We’re here to help you navigate the complexity and ensure your pension remains aligned with your long-term plans.

After a very wet, windy and stormy February it is lovely see some sunshine and the first spring flowers coming into bloom.

The income tax thresholds have not been frozen as initially planned in the 2026 finance bill; instead, they have increased by 0.9%, aligning with the 2025 rate of inflation. The new tax-free allowance is €11,600 per person. The other tax bands are as follows:

Employees can deduct a set amount of €509 from their taxable salaries for costs, capped at €14,556. The 10% abatement before tax will still apply to pensions with a minimum of €454 and a maximum of €4439.

To reduce your taxes and assist you at home you may use home help such as a gardener or cleaner. Now the cost of home delivered meals to the handicapped or elderly and their dependents also qualifies for a tax credit even if you don’t have other kinds of home help. While services may be more limited in rural areas, it’s worth exploring.

Another measure that has been scrapped is the increased VAT threshold for independent workers and furnished rentals. This threshold remains unchanged.

As mentioned in last month’s Ezine, social charges have risen from 17.2% to 18.6%. Whilst this does not apply to assurance vies nor PEL accounts, it will apply to PER retirement accounts. Also, after the recent fall in interest rates on the Livret A and LDDS accounts on 1st February, the interest rate on the LEP account has also dropped from 2.7% to 2.5%.

On 25th February 2026 the Prudential Assurance Company board reviewed the Prufund Expected Growth Rates (EGR) as part of its quarterly review. Prufund aims to help customers grow their investments over the medium to long term (5 to 10 years) while protecting them from short-term market fluctuations through the unique smoothing process. The Expected Growth Rate (EGR) is the forward-looking element of the unique Prufund smoothing mechanism. This quarter the EGRs for all versions of Prufund remain unchanged.

However, there have been some upward movements to the, the Unit Price Adjustment (UPA), the backward-looking element of the Prufund smoothing process, which is formulaic and non-discretionary, as follows:

Prufund Growth GBP       +2.54%
Prufund Growth Euro      + 3.25%
Prufund Growth USD      + 3.46%

This is positive news for Prudential International investors when they receive their quarterly statements at the end of the month.

At the time of writing, the US and Israel have launched strikes against Iran, which will have an impact on oil prices and may cause some short-term market volatility. However, our well diversified portfolios are designed to withstand periods of geopolitical tensions. In times of intense media coverage, it’s important to remain calm and focus on long-term strategies.

At the end of January, I joined colleagues and product providers at our annual conference in Monaco. We heard a range of insightful presentations from companies including Evelyn Partners, iPensions, Momentum, New Horizon, VAM Alquity, LGT Wealth Management, Novia Global, Rathbones, Utmost, Prudential and RBC Brewin Dolphin.

There is often a difference between what dominates the headlines and what investment managers focus on. While it has become increasingly difficult to ignore what is happening in America, it is important to remember that we maintain a long-term focus for our clients’ investments.

As outlined by the fund managers, markets remain heavily tech-focused. However, although stocks from the companies known as the “Magnificent Seven” dominated markets in 2023 and 2024, there has been some broadening in 2025. Nvidia shares have recently flatlined and Microsoft was down 20%. Even though European stock markets are performing better, fund managers are not yet ready to abandon US equities in favour of European ones.

Unfortunately, the UK economic outlook remains gloomy. For several years now, fund managers have highlighted how little exposure they have to UK stocks within their portfolios. However, the FTSE 100 performed well in 2025, largely because many UK companies generate profits outside the UK.

AI also requires significant infrastructure, including large data centres and substantial energy supply. Its influence is now extending into emerging markets as well.

Fund managers have reduced their oil exposure as energy prices continue to decline. Sovereign bonds, however, are becoming more attractive, with yields of between 1% and 3%, particularly Norwegian, Australian, New Zealand and Japanese bonds.

Novia announced its new GIA product which, like its SIPP, can hold funds denominated in HKD and Australian dollars, as well as GBP, EUR, CHF and USD. Currently, UK SIPPs sit outside a deceased person’s estate for inheritance tax purposes. However, proposals from the UK Chancellor will bring defined contribution pensions into the inheritance tax net from 6 April 2027.

Evelyn spoke about the digital data boom, describing it not as a fad but as a generational shift (anyone with teenagers will relate). Their aim is to “turn data into dollars” in 2026, and they continue to see opportunities, particularly among companies utilising AI. Stronger earnings and a weaker dollar are also supporting emerging market equities.

In French financial news, from 1 February 2026 the interest rates on French savings accounts have been reduced as follows:
Livret A: 1.50%
Livret de développement durable (LDDS): 1.50%
Livret Jeune: 1.50%
Compte Épargne Logement (CEL): 1.00%

Local taxes, in particular taxe foncière, are not expected to increase by more than 0.80% in 2026, due to the increase in the rental value of properties.

Other key changes from 1 January 2026 include:

• The annual social security ceiling is set at €48,060 (€4,005 per month).
• The legal interest rate is set at 6.67% for loans between individuals (for example, late custody payments) and 2.62% for loans between professionals.
• The maximum amount that can be withdrawn from a deceased person’s bank account to cover funeral costs is €5,965.
• Medication, treatment or services provided by non-contracted doctors (those who set their own fees) will no longer be covered by social security from January 2027.
• Fees for certain medical specialists have increased (€40 for a gynaecologist, €42 for a geriatrician and €57 for a neurologist).
• Stamp prices have increased, as they do each year, to €1.52 from €1.39. Postal costs for other services have also risen.
• Interest earned on PEL savings accounts is subject to income tax (12.8%) and social charges (18.6%), bringing the flat tax rate to 31.40%. Holding a PEL allows access to a mortgage at 3.2%.
• If you are expecting a baby in 2026, you may be entitled to an additional two months of maternity, paternity or adoption leave.

In January, if you benefited from specified tax credits or reductions (for example, home help), you will have received a payment equal to 60% of the total amount. The remaining balance will be reconciled through your 2025 tax return in September 2026.

After catching up with work following the conference, I will be spending time with my family from 16 to 20 February during the half-term holidays. If you have any questions about the information above, or would like to arrange a time to discuss your financial matters, please do get in touch.

Happy New Year!! I wish you all the very best for 2026. I hope that you had an enjoyable festive season. We spent Christmas at home, which was very nice and relaxing, so now I am well rested, ready for the new year and looking forward to seeing all my clients. 

On 9th December the Law for the Financing of the Social Security was adopted by the National Assembly and, pending any issues with the Constitutional Court, it is now enacted into law. Under this law, the official retirement age is now 62 years and 9 months, with a required contribution of at least 170 semesters set until 1st January 2028 for pensions taking effect from 1st September 2026. As a result, anyone born between 1964 and 1968 may retire 3 months earlier than previously expected. Furthermore, as from 1st January 2026, the French state pension increased by 0.9%.

This law also increased the CSG social charges on interest, dividends and capital gains from 9.2% to 10.6%. The flat tax (PFU) on this income has therefore risen from 30% to 31.4%. However, withdrawals from assurance vie policies, PEL and PEP (plan épargne populaires) accounts, rental income and capital gains on property are not affected. So for people with money in UK saving accounts, the interest will now be taxed more heavily in France. It is worth considering whether it remains appropriate to keep such accounts, or whether it would be more tax-efficient to move funds into French savings vehicles such as a Livret A or LDDS, or into an assurance vie for longer-term planning.

If you have up to €61,200 that you need to put away for a year or two, a PEL account opened from 1st January 2026 now offers an interest rate of 2% compared with 1.75% for PELs opened after 1st January 2025. The interest rate for a PEL is determined at the time the account is opened.

From 1st January 2026, cash gifts now need to be declared online via your account on the impots.gouv.fr website. This applies to gifts of money, shares or valuable items such as a car. You will be asked to declare any money or gifts of value and state whether they fall under the €100,000 allowance between parents and children or the €31,865 made by a relative under 80 years old to a recipient who is over 18 years old. If the recipient is a minor, their parents should do the declaration for them on their online account. Christmas gifts remain exempt and do not need to be declared.

Since 1st December 2025, parents who are divorced or separated, will now both receive childcare benefit (complement de libre choix de garde) provided the child is cared for by a registered childminder either at the childminder’s home or at the child’s home.

For those looking for a bargain or waiting to buy something special, the sales in France will begin on Wednesday 7th January at 8am and will continue until Tuesday 3rd February.

Furthermore the thresholds for what is considered a low income and middle income households have been increased.

Later this month, I will be attending our annual conference in Monaco with colleagues and meeting with our product providers to review the past year and discuss the factors likely to influence investment strategies in 2026. I will share key insights from our conference in the next Ezine.

In the meantime, if you have any questions about the topics above or would like to discuss your personal financial situation, please do not hesitate to get in touch to arrange a free phone call or meeting.

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.