Seek legal advice over capital gains tax

Britons planning a move to France should consider seeking legal advice to understand new capital gains tax laws, which will come into effect from February 1st 2012.

Taper relief exemption will be tightened up next month, which will affect those with property.

Currently, if you sell property in France, you are liable to 19 per cent tax on the capital gain that the sale price gives, Justin Postlethwaite, editor of FrenchEntree.com, explained.

However, this will change next month when taper relief exemption, which was previously offered to Brits with property in France, is "tightened up".

"The change in the law will mean 100 per cent relief only after 30 years of ownership, based on a sliding scale of reductions," Mr Postlethwaite stated.

Currently, overseas homeowners are offered a ten per cent reduction relief in the calculated gain for each year of ownership after the fifth year.

With French property law continuing to change, people considering buying a home in France should always first seek legal advice.

Published by Jessica Shervin