Yachts and luxury cars won’t escape taxation!
French MPs have voted to add an additional levy to the tax on car registration certificates. Another measure aims to increase the annual francisation and navigation fee and the passport fee.
Which vehicles are affected? When will these measures come into force? Are vintage vehicles affected?
Tax on yachts and luxury cars
These provisions are to be set against the 2018 Finance Bill, which abolishes the solidarity tax on wealth (ISF), and creates the new tax on real estate wealth (IFI). As this tax now only concerns real estate assets, MPs have decided to “compensate” for this loss by increasing certain taxes on yachts and luxury cars.
1. Additional levy on vehicle registration tax
MPs voted to introduce an additional levy on registration certificates for passenger vehicles, codified under a new article 963 A of the General Tax Code.
The levy will apply to passenger vehicles acquired on or after January 1, 2018, with more than 36 horsepower.
The amount of the levy would be equal to €500 per tax horse from the 36th.
The levy would be capped at €8,000.
Collector vehicles are not concerned
A “smoothing” system is planned to avoid threshold effects, with a gradual increase in the amount of the tax on the first 16 tax horses concerned.
A transitional system has been introduced to avoid penalizing people who bought their vehicle before January 1, 2018, but were unable to register it before that date.
In the amendment that was tabled, the MPs specified that this additional tax mainly concerned very high-powered sports cars meeting a specific demand from a limited number of consumers.
This tax will thus provide additional budgetary revenue for the State, estimated at 30 million euros.
Full list of vehicles concerned:
- Aston Martin V8 Vantage, Vanquish S
- Bentley Continental GT
- Porsche Cayenne Tubro S
- Lamborghini Gallardo
- Land Rover Range Rover Sport V8
- BMW M6, M5
- Ferrari F430
- Audi S8, R8
- Mercedes Benz AMG GT
- Nissan GT-R
2. Increase in yacht taxes
A further measure aims to increase the annual francisation and navigation fee and the passport fee applicable to pleasure and sports vessels over 30 meters in length and with a power rating of 750 kW or more.
3. Increase in precious metals tax
The rate of the tax on precious metals (gold, silver, platinum) referred to in article 150 VK of the General Tax Code would also be raised from 10% to 11%.
Do you have further questions on these subjects? Would you like to know whether your vehicle will be affected by these provisions? Or your boat?
Contact us and a lawyer from the AGN Avocats network will meet with you!