Budget 2026: the tax on holdings removed... by mistake? Legal analysis and outlook for businesses.
On Monday, October 20, 2025, the Finance Committee of the National Assembly experienced an unexpected moment: an amendment led, by mistake, to the removal of the tax on wealth management holdings. A reading confusion, later pointed out by the committee president, Éric Coquerel, caused a shockwave in the business and tax world. For business leaders and investors, this situation raises many questions: what really happened? What are the potential consequences of this parliamentary incident? And above all, how should holdings prepare for a possible legislative reversal?
In this article, PRAX Avocats, a firm specializing in legal advice for start-ups and businesses, analyzes this episode to draw key lessons and remind of the points of vigilance to observe.
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What Really Happened: A Parliamentary Confusion with Serious Consequences
During the committee's examination of the 2026 Finance Bill (PLF 2026), an amendment submitted by Jean-Didier Berger (Republican Right group) completely replaced Article 3 of the government text. This article concerned the taxation of wealth management holdings, a measure intended to broaden the tax base of certain wealth-holding structures.
However, the replacement amendment only addressed a component related to holdings' successions, omitting the initially planned provision on the tax. The direct consequence: the outright removal of this tax, without it being explicitly intended by the deputies.
The president of the Finance Committee, Éric Coquerel, acknowledged the error in the session: several elected officials believed it was merely a supplement to the system, not a complete rewrite. He also indicated that this removal "was not intentional" and that the government "would revisit this point in a public session."
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The Fiscal Stakes of This "Accidental" Removal
This involuntary removal occurs in a tense budgetary context, where the government seeks to sustain the differential contribution on high incomes and to keep the deficit below 3% of GDP. The creation of a tax on holdings was part of this framework: it aimed to better regulate wealth holding through intermediary companies and to avoid certain excessive tax optimization effects.
1. Who is Affected?
Wealth management holdings are structures commonly used by entrepreneurs, executives, and investors to:
- centralize the holding of shares in various companies;
- organize business transmission;
- optimize taxation on dividends and capital gains.
The removal of the tax – even temporarily – could have an immediate effect on capital holding strategies, particularly in family groups or start-ups using control holdings.
2. What Are the Short-Term Impacts?
To date, no definitive legislative modification has yet been ratified. The incident that occurred in committee has no normative value as long as the finance law has not been definitively adopted. However, practically, this situation creates:
- a period of uncertainty for business leaders regarding their tax forecasts;
- a possible readjustment of wealth structuring strategies in case the tax is reintroduced.
For already established holdings, it is advisable to avoid any structuring operation (merger, dividend distribution, group restructuring) without clarifying the upcoming framework with a business law attorney.
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Legal Analysis: What This Episode Reveals About the Complexity of Corporate Tax Law
From a legal perspective, this incident highlights one of the paradoxes of the French tax system: the technical density of the texts can lead to interpretation errors, even within parliamentary bodies.
1. A Complex Legislative Process
The Finance Bill (PLF) is a particularly voluminous text, often amended at the margins by parliamentarians. Each modification can, however, have major consequences. In this specific case, the complete replacement of an article led to erasing the legal basis for the tax. This type of incident underscores the importance of legislative coherence and thorough legal reading of amendments.
2. A Lesson in Caution for Businesses
For businesses and wealth management holdings, the current situation is a strong signal: tax regimes evolve rapidly and sometimes unpredictably. Leaders must remain attentive to the phases of discussion and adoption of finance laws.
In practice:
- It is essential to conduct regular tax audits to anticipate the effects of a reform.
- Wealth structures should incorporate adaptation clauses (for example, in shareholder agreements or cash management agreements) allowing for quick responses to a regime change.
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What to Do for Business Leaders: Adapt and Secure Without Rush
The episode of the 2026 Budget perfectly illustrates the volatility of the tax framework. For leaders and founders of start-ups, this underscores the importance of personalized legal support to maintain solid and strategic compliance.
Practical Advice
- Monitor Legislative Developments: The reintroduction of the tax during the public session vote is likely. Therefore, it is crucial to remain actively vigilant until the final finance law is promulgated.
- Do Not Rush into Hasty Reactions: Do not modify your holding's structure solely in reaction to this parliamentary episode.
- Consult an Expert: A business law attorney can simulate the effects of different tax scenarios on your group and identify legitimate optimization options.
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In Conclusion: A Useful Reminder of the Need for Constant Legal Monitoring
The voting error on the removal of the tax on holdings is not just a parliamentary anecdote. It reminds us how much the legal and tax management of a business requires vigilance, responsiveness, and expertise. For start-ups and groups structured around a holding, this episode highlights the importance of an evolving legal strategy aligned with legislative news.
In a context where texts evolve rapidly and where margins for interpretation can be thin, support from a specialized law firm remains a valuable lever to secure your decision-making.
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Contact the Firm
For any questions regarding the structuring of your holding, the tax consequences of the 2026 Budget, or more generally to benefit from tailored business legal advice, contact PRAX Avocats.
Our team supports start-ups, entrepreneurs, and leaders in all their legal issues in business law, labor law, and intellectual property.