Possible evolution de la fiscalite des valeurs mobilieres

[CeeJay]

The above headed letter received with bank statement from Credit Agricole. I deduced that at the moment one is allowed to sell up to 25 830Euros but this may change next year.

I am not entirely sure what this relates to so could anyone help please.

[NormanH]

This perhaps?....not having seen the letter it is hard to be sure.

http://www.epargne-placement.org/blog/evolution-fiscalite-bourse.php

[parsnips]

[quote user="Ceejay"]The above headed letter received with bank statement from Credit Agricole. I deduced that at the moment one is allowed to sell up to 25 830Euros but this may change next year.

I am not entirely sure what this relates to so could anyone help please.

[/quote]

Hi,

      In 2009 you could sell up to the limit (then slightly less than 25830€) of shares or parts of mutual funds without even declaring them. This year 2010, you have to declare, in 2011, all sales but will only be subject to CSG on any gains. Next year 2011, you will have to declare, in 2012, all sales and will be subject to a fixed rate tax of (I think) 19% plus CSG on all gains.

      This is why IFAs are advising cashing up to the limit this year , and using any accumulated losses over the previous 10 years to reduce the CSG bill.

       In future years , the best policy, unless you are reliant on this income, is to make no sales, as most of the french won't, and eventually the government (as in the past) will realize that this punitive tax is severely limiting the mobility of capital, and so the investment needed for economic recovery.

[Mikep]

The most significant change (I think) is that there used to be an allowance before capital gains became declarable, and therefore taxable - you could sell up to (I think) 25,000 euros of value before you even had to make the calculations of gains. This was the "Seuil de Cessions" (ceiling of sale values). This has now been abolished - you have to declare everything sold right from the first euro, and all the gain is taxable. This can make any share dealing a nightmare.

[CeeJay]

Thanks to all who replied, this has increased my knowledge of fiscal matters here in France, although thankfully I don't have any shares in anything to worry about!

[NormanH]

Now covered here