Capital gains tax, capital gains tax change on French properties, capital gains tax on French properties, CGT capital gains tax France, French capital gains tax, French capital gains tax change, French capital gains tax change 2013, French capital gains tax change 2014
January update: the following amendment has finally been repelled and the Capital Gains Tax reform (on houses and flats) was fully backed up and validated by the Parliament in December 2013 and the Constitutional Court in January 2014. Also the Constitutional Court cancelled the government project to change the Capital Gains Tax on building land.
The Capital Gains Tax reform (CGT) in place since the 1st of September, but not yet validated by the National Assembly, might be partially changed from the 1st of January 2014.
The Finance commission of the National Assembly recently voted to partly amend the CGT reform on second homes in place since the 1st of September. According to this amendment, the CGT would be changed for second homes owned more than 22 years, from the 1st of January onward.Since the 1st of September, the 15.5% “social charges” part of the CGT (see our post “capital gains tax on French property: latest updates and calculations (part 1)”) benefits from a 9% rebate per year from the 23rd year of property ownership until the 30th year of ownership, leading to a complete exemption of the social charges after 30 years. The amendment proposes to cancel the 9% rebate from the 22nd year.
However, the reform implemented since the 1st of September 2013, would remain unchanged for second homes owned for less than 23 years. Additionally, the 25% additional rebate would remain in place untill the 31st of August 2014, as planned by the CGT reform implemented since the 1st of September.
The amendment still has to be backed by both assemblies (the National Assembly and the Senate).
The CGT reform, was also supposed to cancel all CGT rebate on building land from the 1st of January onward (read our post “time to buy building in France?”). This does not seem to please the Finance commission of the National Assembly, however the finance commission has not set up its mind yet.