UK residents looking to sell their French second home are seeing their capital gains tax exposure significantly increased by the end of the Brexit transition period on 31 December 2020.
As confirmed by the French Directorate General of Public Finances, UK residents are now subject to French social security contributions at the full rate of 17.2% (previously 7.5%) and required to appoint a French tax representative to guarantee their payment of the tax.
Russell-Cooke senior associate Patrick Delas explains in Taxation the effect of the end of the transition period on UK residents who own property in France.
Patrick is a Solicitor (England & Wales) and Avocat au Barreau de Paris. His specialist work is private international law and includes advising on French and cross-border tax issues (Inheritance Tax, Capital Gains Tax, Wealth Tax and trust reporting obligations).