6 October 2014

The French Constitutional Council will have to take a position on the IPT rate applicable to fire risks for private buildings dedicated to private school use. This follows a decision taken by the Cour de Cassation considering a complaint from Mutuelle Saint-Christophe, a mutual organisation specialising in the insurance of this type of building.
Premiums covering fire risk for private buildings dedicated to school use currently attract the default fire IPT rate of 30%, while the same premiums for State owned buildings used for public schools are taxed at 7% according to article 1001 (1) of the French Tax Code.
The complaint is that this difference in tax treatment could be considered as contrary to the principles of equality before the law and public charges. Furthermore, the high rate may discourage the insurance of fire risk of private buildings dedicated to private school use. As such, the Constitutional Council is now asked, through a priority question, whether both public and private schools should apply the same IPT rate on premium covering fire risk.