Liability to wealth tax and assets concerned (yours, those belonging to members of your household)

You are liable to wealth tax (ISF) if your net taxable French assets amount to €1.3 million or more on 1 January 2016.

Net taxable assets are the amount of assets after deduction of debts.

If your household has several members, your wealth tax will cover all the assets belonging to your tax household. Household composition is assessed on 1 January of the tax year (1 January of year N for wealth tax for year N). The concept of household differs from that used for income tax. For wealth tax, it extends to your spouse (even if you are separated and not divorced), or common law spouse or PACS (civil union) partner and minors for whom you are the legal guardian.

However, children over the age of majority who are included for income tax represent a separate tax household for wealth tax. If their net taxable assets amount to more than €1.3 million and less than €2.57 million, they must file return no. 2042 C only for wealth tax. In the "Renseignements complémentaires ISF" box, it should be stated that they are included in their parents' tax household for income tax. If their net taxable assets amount to more than €2.57 million, they must file wealth tax return no. 2725 together with their payment.

Concisely, they will declare their income and expenses on their parents’ income tax return and their wealth tax on their own return.

Please note: Divorced or separated parents who are jointly responsible for the legal management of their minor children's assets must each declare half of these assets for wealth tax. This applies even if the minor children declare their income tax separately.