What happens if my participatory notes are resold before the end of the 4 years?
When an investment is eligible for the Tax Shelter, it allows you to benefit from a tax reduction on your investment. However, this reduction is only guaranteed on a pro rata temporis basis of the holding of the financial instrument. You have to keep the investment for four years in order to fully benefit from the tax reduction. In other words, if you sell your participative notes or if the shares in which you have invested are sold before the end of the 4 year period following the year of your investment, there will be a reprisal of the tax reduction you received in the year following your investment and this on a pro rata temporis base.
You invest €1,000 in a company eligible for the 45% Tax Shelter scheme. You can reduce your taxes by €450 the year following your investment. The shares are sold after 2 years. Part of the tax reduction will be reclaimed in the year after the sale of the shares, specifically for an amount of 225 € (i.e. 24/48). The pro rata calculation is done per month.
Please note that you will have to indicate in your next year's tax return under code 1328 of section X that you have sold your financial instrument, for which Spreds will of course provide you with an attestation of transfer to complete your income tax return, provided the transfer is the result of a transfer of the underlying asset (the shares).