Jump to content
Complete France Forum

Sale of shares - CGT - and doubly taxed ?


Recommended Posts

I'm a bit confused - would welcome guidance please.

We have some big financial outlays coming up in the next year;  new car, new kitchen, small building works, exterior painting of house.... we're going to have to 'dip' into our savings to cover these costs.

We have a large number of shares (one company) gained under the SAYE scheme (employee share scheme) - and they've been held for nearly 20 years.

We need to sell only some of the shares - but can't get my head around the tax implications.

As these shares have been held for so long there's a subtantial CGT to be faced.

So that's the tax on the difference between final purchase of shares - and the value of each share on the date they are sold - yes ?

That's one substantial tax to be paid, if my calculations are right.

But I'm concerned about the implication on our tax return;  at the moment as pensioners we don't have massive income - fairly modest and fairly taxed.

This sale of shares is going to amount to more than 75% of our annual income.

Now does this 'income' from the shares get included in the 'annual income' - even though it's a one-off - and is already subject to ONE TAX - the CGT ?

If it is included, for tax purposes, in our annual income - then that means it gets taxed twice doesn't it ?

Or have I got my ---- in a twist ? 

Any experts on this on here - please ?

Regards - Chessie

Link to comment
Share on other sites

In the UK you can make a gain of roughly £11000 without paying any tax. That's per person, so potentially , depending on who owns the shares that could be £22000 tax free gain.

If you split it over a couple of tax years, say next March and April that could be £44000 gain.

As you have held the shares for more than 8 years, In France you pay tax on 35% of the gain at your marginal income tax rate. In addition you have the social charges at roughly 15% on the whole gain.
Link to comment
Share on other sites

Thanks everyone.

BJSL -  I'm very well aware of the generous nature of the UK's CGT allowance - highlights the punative nature of french CGT tax doesn't it?   Horrible - if in UK then NO CGT because gain shared by spouses - out here - grrr.

Maybe I didn't make myself clear;  the gains would have to be declared separately - yes ?  

Then taxed at 30-35% (inc social charges).   

Would that TOTAL GAIN then have to be included in total annual income, in effect almost doubling our annual income from pensions  - ie for the French to take two slices of it ?  

Or am I being terribly cynical and untrusting ? !!  

Wish we'd thought earlier about selling some of these and putting them into different investment maybe  ISA - or do such investments also get 'hit' by French CGT?

Oh the problems of a little bit of money..........Looks as though there's nothing we can do, but it's going to hurt - quite a bit.

Thanks - Chessie


Link to comment
Share on other sites

I sold some UK shares last year (given to me via my grannies will) in the UK. Unless somebody here asks me I am not going to volunteer that information. As somebody said unless your cashing in a huge and very noticeable amount who is to know. If the UK taxman asks you to pay tax on the profit and you do then as said you can't pay twice under the dual taxation. Reading some post on here over the last year it seems some people go out of their way to pay the taxman their very last cent. Watch Panorama tonight (18:00 UK time) and tomorrow about this sort of thing and who the tax people are really after, it won't be you that's for sure.
Link to comment
Share on other sites


    As a french resident your gains are not subject to UK tax, only french.

 There are arrangements under the french tax regs to reduce the extra tax caused by such one-off large sums on the declaration. 

  Such amounts are declared under Box 0XX -(revenus exceptionnels ou différés) on form 2042 (the usual declaration).

See the explanation here;



It might be wise to take your declaration to the tax office to discuss your situation when the declaration is due.

Don't forget to translate the purchase and sale prices into their € values on the day of purchase and sale , with the £ so low now , this can make a considerable saving on the final tax bill.

Link to comment
Share on other sites


This topic is now archived and is closed to further replies.

  • Create New...