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Does French pension mean I pay higher social levies on CGT?

A possibility exists of paying less on gains depending on your social security situation

We look at the criteria needed to retain lower social charges on capital gains tax in France Pic: Kotchapan VII / Shutterstock

Reader question: I live in the UK. Does the fact of having a French pension mean that I lose the entitlement to lower social charges on the sale of my French holiday home? 

Rules were released last year by the French authorities as to how British residents/Britons can retain lower social charges on capital gains on property sales, as are available for residents in the EU who sell property in France. 

They stated that this applies where someone is: 

  • Affiliated to UK social security
  • A national or resident of France, the UK or the EU
  • Not a burden on a French obligatory social security regime

This was because the French took the view that Brexit deals had maintained close cooperation in social security between the UK and EU. 

The issue for you could be the ‘burden on a French social security regime’ aspect. 

Laurent Gravelle, an English-speaking French tax lawyer from Sophia-Antipolis, Alpes-Maritimes, said that whether you benefit from the lower charges or not will vary depending on your situation. 

Where a UK resident has a French pension and this is their only state pension, they should apply for a French S1 form so this country pays for their UK healthcare and they would not obtain reduced charges. 

If you draw a UK state pension as well, or you are working in the UK, this takes priority and you can benefit from the lower rate.

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UK pension but living in France? Funds could benefit from moving too

Resident or second-home owner in France?
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Income Tax in France 2023 (for 2022 income)*
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- Primarily aimed at Britons, covers pensions, rent, ISAs, shares, savings and interest - but also contains significant general information pertinent to readers of other nationalities - Overview of online declarations + step-by-step guide to the French printed forms - Includes updates given automatically after this year's site opened
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