L.F. Article on C.G.T.

[Jon 1]

Has anyone read the CGT article in the March issue of LF?
As is sometimes the case with these articles it throws up more questions than it answers.
For example, it states that a 15% reduction can be obtained without producing documentation. Can anyone elaborate on this?
It seems that if you are resident you have to pay an additional 10% CGT over and above the 16%.
In this latter case, what would happen if you had a second home but it became your prime residence if you became permanently resident? Does this mean that you have no CGT as it is now your permanent home or that you jump to 26% because you are a France resident?

[Will]

LAST EDITED ON 01-Mar-04 AT 11:12 AM (GMT)

It would be interesting to know more about the 15% reduction and what it's for. Apart from the sliding-scale time-related reduction I'm sure all other claims against CGT would require supporting paperwork.

If your second home becomes your primary home you shouldn't pay CGT if you are French resident. The normal way of determining residency for tax purposes is whether or not you have filed a tax return in France.

I read elsewhere (no idea of its validity) that the apparent 26% rate for French residents is because various social charges are added on; so you still pay the standard CGT rate, the extras bumping it up to around 26%. Presumably then if you don't pay social charges in France you won't get hit for these extras. French residents would normally only pay CGT on second homes.

Will (50)

[Buntina]

I have given up trying to contact these people - no replies

Mike

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