This briefing highlights the provisions of the French 2011 Supplementary Budget concerning the taxation of capital gains on immoveable property and considers their relevance for UK citizens selling a second home in France. Reviews the background to the French capital gains tax regime, explains the operation of taper relief before and after February 1, 2012, and illustrates its practical significance for sellers by a hypothetical case scenario. Discusses the possibility of the reforms being overridden by the provisions of the France-United Kingdom Tax Treaty 2008 in some circumstances. 

It has been published in the Private Client Business P.C.B. (2012) No.3 Pages 92-97 on 9 May 2012.

13 The rates of corporation tax are available at http://www.hmrc.gov.uk/rates/corp.htm

For further information please contact Patrick Delas, solicitor - senior associate - avocat.

French 2011 Supplementary Budget – Taxation of Capital Gains on Immoveable Property - May 2012.pdf