The 2019 finance bill is less innovative than last year's, which included replacing the solidarity tax on wealth (ISF) with a real estate wealth tax (IFI) and the introduction of a flat tax on capital income, yet it does contain measures that adjust a number of existing mechanisms, especially the Dutreil Pact and real estate tax.
Dutreil Pact reforms
The mechanism known as the "Dutreil Pact" limits the inheritance or gift tax payable on the transfer of shares in industrial, commercial, craft-based and agricultural businesses or for self-employed individuals. The tax rules have been relaxed to solv...