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
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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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