AMF Mixed TopicsThu-12-03-2015, 22:44 PM
A new ruling by the European Court of Justice means that France is liable to refund Brits who have sold their property in the past couple of years.
Quote:
President François Hollande in 2012 imposed a 15.5 per cent "social charge" on capital gains from the sale of second homes or rental income, tax on rental income rose overnight from 20 per cent to 35.5 per cent, while capital gains tax on property sales rose from 19 per cent to 34.5 per cent.
In its February 26 ruling, the Court of Justice concluded that the tax violates EU law because a resident of a member state must contribute to the social security system of one member state only.
It is thus illegal under EU law for France to levy social charges on income and gains derived by non-French EU residents on selling or renting their French property.
Graeme Perry, a London-based French tax law expert, said the ruling was "good news for the many EU residents who have been forced to pay this charge". He advised anyone who has not already submitted a claim to the French tax authorities to do so now.
The chances of being reimbursed are "very, very strong" for anyone who sold their second home in 2014, he said. "If you have already made a claim, you should now write to the French tax administration asking for your money back and also asking for a refund of any tax agent's fees."
To limit the damage, the French recently imposed stricter deadlines on submitting reimbursement claims. These prevent anyone who sold in 2012 or 2013 from making a claim unless they did so by December 31 of the year following that sale. These deadlines, however, "may be open to legal challenge", said Mr Perry.
telegraph.co.uk
