Personal finance: what to remember this week

In April 2022, the average mortgage rate stood at 1.27%. The French Prudential Control and Regulation Authority (ACPR) has called on distributors of life insurance contracts to better respect their duty to advise. Progressive retirement has been open to employees on a daily basis since the start of 2022. The conditions for terminating insurance contracts will be harmonised. Parents of children attending school (college, high school and higher education) can benefit from a tax reduction. The amounts collected by individuals for carpooling do not have to be declared if certain conditions are met. The duration of parental presence leave can be doubled in certain cases.

Summary:


  • Real estate: the rise in borrowing rates is accelerating


  • Life insurance: the ACPR wants to better enforce the duty to advise


  • Progressive retirement is open to employees on a day pass


  • Insurance contracts: towards a harmonization of termination conditions


  • Taxes 2022: benefit from the tax reduction for tuition fees


  • Carpooling: must the sums collected be declared?


  • Parental presence leave can be doubled under certain conditions

Real estate: the rise in borrowing rates is accelerating

The average mortgage rate (excluding insurance) stood at 1.27% in April 2022, compared to 1.18% in March 2022, according to the Observatoire Crédit Logement/CSA. During the first two months of the year, the average loan rate increased only slightly before increasing much more rapidly during the following two months, without however rising at a rate comparable to that of inflation. (4.8% over one year in April 2022). According to the analysis of the Crédit Logement/CSA Observatory, the demand for mortgages has been destabilized by the deterioration in purchasing power, the rise in housing prices and the war in Ukraine, but banking establishments are trying to limit the rise in rates to preserve the solvency of demand.

Life insurance: the ACPR wants to better enforce the duty to advise

The French Prudential Control and Regulation Authority (ACPR) has called on distributors of life insurance contracts to better respect their duty to advise financially fragile customers. Indeed, the regulator indicates that these contracts are likely to worsen the financial situation of customers who do not have precautionary savings to meet their short-term cash flow needs. The ACPR asks distributors to be even more careful when it comes to unit-linked contracts, which can lead to potential capital losses and are therefore not suitable for customers affected by a fragile financial situation. .

Progressive retirement is open to employees on a day pass

The progressive retirement scheme allows certain workers at the end of their career to receive part of their pension, while continuing to work part-time. Previously, employees who had concluded a flat rate agreement with their employer in days over the year could not benefit from this system. Since the beginning of 2022, these employees are now entitled to it, provided they are over 60 years old and have at least 150 quarters contributed. The system is also extended to employees who are not subject to working hours, or whose working hours cannot be determined, as well as to self-employed workers.

Insurance contracts: towards a harmonization of termination conditions

Work carried out between November 2021 and April 2022 under the aegis of the Advisory Committee for the Financial Sector (CCSF) will enable the harmonization of the conditions for the termination of insurance contracts. From July 1, 2023, insurance contracts will be terminable at any time after the first year of subscription, with a few exceptions (provident insurance and long-term care insurance contracts, seasonal contracts and contracts covering yachting and gear). motorized and non-motorized personal transport). In addition, the waiver period within the framework of the subscription of an affinity insurance contract should be extended from 14 days to 30 days.

Taxes 2022: benefit from the tax reduction for tuition fees

Taxpayers whose children attend middle school, high school and higher education are entitled to a tax reduction related to tuition fees of respectively 61 euros, 153 euros and 183 euros per child. To benefit from this tax reduction, you must mention in your income statement the number of children attending school, their surname and first name, the name of the establishment and the class attended. It is not necessary to attach the education certificate, but it should be kept in case of request from the tax authorities.

Carpooling: must the sums collected be declared?

Individuals carpooling against income do not have to declare the sums collected to the tax authorities provided they meet three conditions, recalls the Ministry of Economy, Finance and Recovery. The trip must be made on behalf of the driver, the price of the trip must not exceed the mileage scale and must be divided by the number of travellers. Finally, the driver must also pay part of the costs incurred by the trip (fuel, toll). If these three conditions are not met, the carpooling activity is considered as a self-employed professional activity and must therefore be declared as such.

Parental presence leave can be doubled under certain conditions

Parental presence leave allows the parents of a seriously ill, injured or disabled child, requiring sustained presence, to cease or reduce their professional activity. Since November 2021, the duration of this leave compensated by the daily parental presence allowance can be doubled, from 310 days to 620 days, under certain conditions. Two decrees published in April 2022 specified the terms. The request for renewal must in particular be made for the same illness, disability or accident of which the child was the victim, as for the initial request.

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