Uk owners of French holiday homes can breathe a sigh of relief. Plans to introduce a new property tax from January have been scrapped says Citywire columnist Lorne Bourke. The proposed new tax law was approved by French MP’s but President Sarkozy removed it via an amendment. This was due to concerns that it would generate “bad publicity”. It was also thought that the new law might be challenged under European law as a “discrimination against non-residents and a barrier to the free movemnet of capital” according to John Lichfield in the Independant.
If the law had been passed then British owners of French holiday homes would have been obliged to pay a tax of 20% of the theoretical annual rental value of the property, even if it was not let out! Houses let out full time would have been exempt.
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