MPs rejected every increase on inheritance tax. For selling, the real question remains the declared value.
Inheritance took up a long session of the 2027 budget debate. On 16 October 2026, MPs rejected every increase put to the vote, including several that would have changed the taxation of reselling an inherited property. What remains at stake mainly concerns gifts. For heirs who sell, the key point remains the same: the value declared in the estate.
What does not change
The draft 2027 budget changes neither the inheritance tax scale nor the allowances. A child still benefits from a €100,000 allowance per parent, before a progressive scale from 5% to 45%. The look-back period for gifts remains fifteen years. The inheritance tax return must still be filed, and the tax paid, within six months of the death when it occurred in mainland France.
What MPs rejected
Of the 19 amendments rejected on 16 October, three directly concerned heirs who sell. They targeted so-called “latent” capital gains: today, the capital gain built up by the deceased is wiped out at their death. The heir who resells calculates their own capital gain from the value used in the inheritance tax return, not from the price originally paid. These amendments proposed keeping the deceased's purchase price, or taxing the capital gain at the time of transfer. All were rejected, as were bringing life insurance into the estate and removing the advantage of split ownership (usufruct and bare ownership).
An amendment going the other way, which exempted the family home up to €300,000, was also rejected. The rules for inherited property therefore remain the ones we know.
Undervaluing the house to pay less inheritance tax often costs more on resale.
What remains under discussion
The government's bill provides, for 2027, a temporary regime for cash gifts to 18-50-year-olds: a 6% rate up to €100,000 per donor and per beneficiary. MPs extended this window to the whole of 2027 and raised the tax-free cash gift from €31,865 to €100,000. The bill also tightens the rules for certain life insurance contracts for deaths from 1 July 2027.
As of 22 October 2026, nothing is final. These measures are part of the first part of the budget, whose vote has been postponed to early November. If it were rejected, the bill would go to the Senate in its original version, without the amendments adopted. Final vote expected in December.
For an heir who sells, this window may matter: selling the inherited house and then passing part of the proceeds on to their own children, in cash, could cost much less in 2027 than today.
The declared value, key to the resale
Since the capital gain starts again from the value entered in the inheritance tax return, this value drives both the inheritance tax and the tax on resale:
Worked example: two ways of declaring the same house
Fictitious case. Two children inherit a house worth €300,000 on the market. They resell it for €300,000 a year later. Sale costs and tax paid not deducted, for simplicity.
| Declared at €300,000: capital gain on resale | €0 |
| Declared at €240,000: inheritance tax saved (2 × €30,000 at 20%) | about €12,000 |
| Declared at €240,000: taxable capital gain on resale (36.2%) | about €21,700 |
| Undervaluing costs, in the end | about €9,700 more |
Not to mention the risk of a tax reassessment: the tax authorities can challenge a value that is too low, especially if the property is resold soon after.
The capital gain on an inherited property is then calculated under the ordinary rules: acquisition price equal to the declared value, plus costs (inheritance tax and deed fees relating to the property), with allowances counted from the date of death. If the house was the deceased's main residence and was occupied on the day of death by their spouse, civil partner or minor children, a 20% allowance applies to its value for inheritance tax.
Selling in 2027: the right reflexes
- Have the house valued at market price, with comparable sales, before signing the return.
- Plan ahead for paying the tax: heirs often have to pay before they have sold, hence the value of putting the property on the market early.
- Do not undersell out of haste: see how to sell an inherited property fast without underselling.
- Settle disagreements early: in joint ownership, the sale in principle requires everyone's agreement; see the 4 ways out of the deadlock.
Our approach
We handle inherited properties, working with the family's notary: a reasoned valuation for the return, then a sale at the right price, on a timetable compatible with paying the tax. Discover our support for inheritances.
Frequently asked questions
Is inheritance tax going up in 2027?
No. The draft budget touches neither the scale nor the allowances, and the increases proposed by amendment were rejected on 16 October 2026.
Does selling an inherited house mean paying capital gains tax?
Only if the sale price exceeds the value used in the inheritance tax return, costs included. The heir's own main residence, however, is exempt.
Can you declare the house at a lower value to pay less inheritance tax?
It is risky: the difference reappears as a capital gain on resale, and the tax authorities can reassess a value that is too low.
What happens to the measures voted if the budget is rejected?
If the first part is rejected, the bill goes to the Senate in its original version, without the amendments adopted by MPs.
Should you wait for the budget before selling?
Rarely: the taxation of reselling an inherited property does not change, while costs and the six-month deadline keep running.
Sounds like your property?
Tell us about it: we look at your case with you, with no commitment.
Get a free opinionRead next
