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As the year draws to a close, it is always worth taking stock of your financial position and considering any last-minute action that could improve your tax efficiency, or set you up well for the year ahead. 

While December is naturally a time of festivities and giving, it also marks an important cut-off point in the French tax calendar.

Unlike the UK, where the tax year runs from April 6 to April 5, the French system is aligned with the calendar year, much like the US (and much more logical of course). 

This means that December 31 is the definitive end of the fiscal year, and any actions you wish to count towards your 2025 tax return must be completed by then.

This is particularly relevant when it comes to tax-efficient payments and donations. Contributions to recognised charities, for example, can generate valuable tax credits, for example as a way of off-setting property wealth tax, but only if they are made before the year’s end.

UK considerations – voluntary NICs

For UK nationals living in France, the year-end reminder relates to voluntary National Insurance Contributions (NICs). 

Those wishing to ensure qualifying years for a UK state pension should make arrangements for the 2025–26 year, if they have not already done so. 

This can be particularly important for expatriates whose contribution records are incomplete. In order to receive the full UK state pension, you will need to have made NIC payments over 30 years. 

Making voluntary contributions, which you can still do even as a French resident, is in our experience usually worthwhile and can be backdated by up to six years. 

Note that Kentingtons are not UK advisers; you should take UK advice on this matter.

Currency, inflation, and the economy

The past year has seen relative stability on inflation, particularly compared to the turbulence of 2023. 

Indeed, the euro area has been one of the more successful blocs at bringing inflation down to around 2%, with inflation of just 1.2% in France.

While challenges remain, this has benefitted the euro, which has been generally stronger in 2025, gaining against both sterling and the dollar. (Note, however, that I am writing this in early October, with both French and UK budgets to come, potentially affecting exchange rates to the year’s end!)

For those reliant on income or pensions from abroad, exchange rates can be a significant factor in one’s standard of living. As we head towards a new year, it is important to think about currency and to have a strategy, where possible.

Capital gains

If you are lucky enough to have a notable uncrystallised capital gain, it is worth considering whether to cash it in (in part or in full) during the current tax year, or whether to wait until 2026. 

Hopefully, by the time you read this article France’s newest prime minister will have managed to have his budget approved, giving clarity and enabling such calculated decisions. 

Seasonal generosity – gift rules in France

With Christmas approaching, it is also timely to reflect on the rules around gifts and French gift tax. 

Everyday presents exchanged at this time of year are not subject to gift tax, provided they are proportionate to the giver’s means. 

However, extravagant gifts that could be deemed out of line with income or assets may attract scrutiny. 

For larger transfers of wealth, France has strict allowances and exemptions, which should always be considered carefully.

The year’s end is more than a festive deadline; it is an opportunity to take positive steps that may save tax, protect benefits (or beneficiaries) and strengthen your financial footing.

Whether through charitable giving, reviewing pension contributions, or ensuring your cross-border affairs remain in good order, a little planning in December can make a significant difference in the year to come, which we hope will be a prosperous one!

Christopher Davenport is a financial adviser at .