c: Special provisions for gifts

I.-Gifts of full ownership of sums of money made to a child, grandchild, great-grandchild or, in the absence of such a descendant, a nephew or niece, are exempt from free transfer tax up to a limit of €100,000 if they are allocated by the donee, no later than the last day of the third month following the transfer:

a) To subscriptions to the initial capital or capital increases of a small business within the meaning of Annex I to Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty, subject to compliance with the following conditions:

-the company has been in business for less than five years, has not yet distributed any profits, is not the result of a merger and meets the conditions set out in c and e to g of 1a of I of Article 885-0 V bis of this Code, in the version in force on 31 December 2017 ;

the donee carries out his or her main professional activity or one of the functions listed in 1° of 1 of III of Article 975, where it is subject to corporation tax.

The benefit of the exemption is subject to compliance with Article 22 of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union;

b) To work and expenditure eligible for the bonus provided for in II of Article 15 of Law No 2019-1479 of 28 December 2019 on finance for 2020 and carried out in favour of the energy renovation of the dwelling that he/she owns and that he/she allocates to his/her main home;

c) To the construction of his/her main home.

The donee may only benefit from the scheme once per donor.

For a single donor, the sum of donations that have benefited from the exemption mentioned in the first paragraph of this I may not exceed an amount of €100,000.

This exemption does not apply to payments made by the donee in respect of subscriptions that have given entitlement to the tax reductions provided for in articles 199 undecies A, 199 undecies B, 199 undecies C, 199 terdecies-0 A, 199 terdecies-0 AB or 199 terdecies-0 B of this code. Nor does it apply to expenditure in respect of which the donee has benefited from the tax credits provided for in article 199 sexdecies or 200 quater, a deduction of expenses for the determination of his categorical income or the bonus provided for in II of Article 15 of Finance Act no. 2019-1479 of 28 December 2019 for 2020.

The donee shall keep the supporting documents available for the administration.

II.-The provisions of I apply to sums paid between 15 July 2020 and 30 June 2021.

>