Under proposals announced earlier this week, UK citizens who own homes in France, could have to pay substantially more tax there by the end of the month.
Earlier this month, the French President, Francois Hollande outlined in a supplementary budget changes to capital gains tax and income tax on rental income for foreigners; which will see levels rise to those paid by French citizens.
Under the proposals, which are expected to come into force by the end of July, rental income tax will rise from twenty percent to thirty-five point five percent; whilst capital gains tax is set to rise from nineteen percent to thirty-four point five percent.
It is estimated that these changes will affect 200,000 British people who own second homes within areas such as Normandy, the Loire Valley and Brittany.
In additional changes outlined by President Hollande, UK citizens who have property in France could also be affected by the restoration to their 2010 levels of the previous bands for annual wealth tax; and this will affect anyone who has wealth in the country, such as property and cars, which are worth more than 1.3 million Euros.
For those who currently own second homes within France or who are concerned about what the tax changes could mean to their finances abroad, our accountancy team at Milsted Langdon can offer honest, impartial and expert advice.
As an accountant in Bristol, Elaine Durrant specialises in offering tax advice, guidance and support to businesses and individuals.