HELPLINE: 
Q: What are the French tax rules on Christmas gifts to children and grandchildren?
A: In France, Christmas gifts to children or grandchildren can qualify as a don d’usage – a customary gift with very favourable tax treatment – as long as certain conditions are met.
The gift must be linked to an occasion such as Christmas or a birthday. Each beneficiary is assessed individually, there is no legal limit and the amount must be reasonable in relation to the donor’s income and overall wealth.
If it qualifies as a don d’usage, the gift is exempt from gift tax and won’t need to be declared or added back into the estate for French inheritance-tax purposes.
Gifts can be made by bank transfer, cheque, cash or by paying directly for a specific expense such as school or university fees. It’s sensible to keep a brief record of the occasion and date.
If the amount is considered excessive, tax authorities may reclassify it as a standard gift, adding gift tax and declaration requirements.