Government tries to kick start French property market by improving CGT exoneration period President Hollande has confirmed that the exoneration period for French property capital gains tax (CGT) will go down from 30 years to 22 years from September 1st 2013. This was previously trailered and expected by the market but the big news is that budget minister, Bernard Cazeneuve, also told the senate that there will be a special temporary reduction to “aid the fluidity of the property market” – this tax allowance of 25% is for one year only and will apply to sales between September 1st 2013 and August 31st 2014. Commenting on this move to boost transaction numbers within the French property market Trevor Leggett (Chief Executive of Leggett Immobilier) says: “It’s clear that the government are determined to boost property sales over the next 12 months. Last year France saw a 12% drop in house sales down to 709,000 and this year we’ll see a further decrease. President Hollande recognises the danger this presents to the wider economy and has acted to halt the decline. Whilst these changes have still to be ratified by parliament next month I see this as a formality, although some of the detail still has to be clarified. It was interesting that Mr Cazeneuve also promised to lighten the social contributions that are currently levied on CGT. Our in-house legal team will be following this closely and combing through the fine print once the law is passed. Over one in ten UK buyers of French property now purchase their homes through Leggett Immobilier and I’m sure that they will be delighted that President Hollande finally seems to accept that the property market is the cornerstone of French foreign investment. We see this as a big step forward for the Hollande government and we are expecting a spike in sales from September onwards”.
Posted on: Tue, 23 Jul 2013 10:15:22 +0000
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