Tax removalIn effectIncome taxNational

Tax reduction on insurance premiums limited to survivor annuity and disability savings contracts

Article 83 of the 2004 Finance Act repeals Articles 199 septies-0 A, 199 septies A and 199 septies B of the General Tax Code and rewrites Article 199 septies: the 25% tax reduction, on payments up to €1,070 plus €230 per dependent child, now only covers premiums on survivor annuity contracts (for a disabled child) and disability savings contracts. Premiums on other life insurance contracts no longer qualify. The measure applies from 1 January 2004 for most contracts and from 1 January 2005 for certain contracts concluded or extended before 5 September 1996.

Measure originators

General rapporteurLR

Philippe Marini

Les Républicains

Impact on public finances

Brings in €180m/yr2004 estimate · State

Source of the estimate: Rapport général n° 73 (2003-2004) de la commission des finances du Sénat, tome III, article additionnel après l'article 60 bis (Rough estimate)

A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.

Effective date

1 January 2004

Measure impact

Holders of ordinary life insurance contracts lose the tax reduction on their premiums; only survivor annuity and disability savings contracts keep it.

Official references

Law number: Loi n° 2003-1311 du 30 décembre 2003 (LF 2004), art. 83

Official Journal: JORF n° 302 du 31 décembre 2003

View on Légifrance

Sources

Loi n° 2003-1311 du 30 décembre 2003 de finances pour 2004, art. 83Official

31 December 2003

Rapport général n° 73 (2003-2004) de Philippe Marini, commission des finances du Sénat — tome III, article additionnel après l'article 60 bisParliamentary

20 November 2003

Procedure timeline

Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.

100%

5 / 5 steps

Completed

1 January 2005

Administrative implementation

Application

Entrée en vigueur de la mesure et mise en œuvre par l'administration

Application aux contrats conclus ou prorogés avant le 5 septembre 1996 par des contribuables dont l'impôt 1996 n'excédait pas 7 000 F (art. 83, V, A).

Source

Completed

1 January 2004