French Capital Gains Tax Reform:

Take a look at the latest news bulletins on French capital gains tax using the links below :

CHFS BULLETIN JUNE 2013 : PROJET LOI DE FINANCES 2014 & CGT: MORE FRENCH CGT REFORM ON THE WAY.

CHFS BULLETIN JULY 2013 : PROJET LOI DE FINANCES 2014 & CGT: MORE FRENCH CGT REFORM ON THE WAY PART 2.

CHFS BULLETIN OCT 2013 : PRELEVEMENTS SOCIAUX DEVELOPMENTS.

CHARLES HAMER'S FINANCIAL SERVICES ROLE IN THE SALES PROCESS

If you are lucky enough, the sale of your French property will result in you realising a gain on your investment. The downside to this is that the gain will normally be assessable to tax in France and again in the UK if you are UK resident.

Until recently, it was often the case that the French tax payable fell below the corresponding UK tax due and, being available as a credit to offset against UK capital Gains Tax (CGT), in the wider scheme of things the amount of French tax actually paid wasn’t so much of a concern.

With the hike in the French tax rate from 19% to 34.5% which took place in August 2012 and the reduced taper relief effective from February 2012, this is no longer the case. More often than not, French CGT will now far exceed the UK tax counterpart.

Even now, following general improvements to the French tax position from 01/09/2013, even though the total French tax may fall below the UK gross assessment, the peculiarities of these modifications and the anomalies brought about by HMRC interpretation of the Prelevements sociaux element of the French tax charge, means that the bottom line for the UK resident taxpayer has - more often than not - taken a turn for the worse again.

Whilst the notaire may be responsible for submitting the tax return (“2048-Imm”) and the fiscal representative, (when relevant), responsible for the payment of the tax, neither of them have any incentive to ensure such tax is at a minimum, despite the latter charging you!

Click here for a break down of the technical notes

Indeed, since the fiscal representative takes on the responsibility for any further tax arising from any tax office re-assessment of any French CGT declaration submitted following the sale, they have an incentive to do the opposite.

In our experience, typically, the fiscal representative will not: