How do I get a refund on the social charges paid on French home sale?

Reader Question: I sold my French home in 2021 and believe I may be entitled to a refund of certain social charges. What must I do?

We assume you are a UK resident who paid full social charges (17.2%) on the sale of a French home in 2021.

If this is the case you have until the end of this year to make a refund claim.

The refund is due because post-Brexit, in 2021, the French initially treated the UK as an ordinary non-EU country with regard to social charges.

However it was later agreed that the rules in the Brexit deal were sufficient to treat the UK similarly to the EU/EEA in this respect.

Residents of these countries pay a lower, 7.5%, in social charges on a property sale.

Claims can be made up to the end of the second year after the tax payment was made.

This can be done via an online message or by writing to the tax office where the property is situated.

Property rental income also qualifies for 7.5% (check your tax bill for 2021). Residents of France with a UK S1 form are also affected, including, in their case, for investment incomes.

You will need evidence of links with UK social security, such as a letter from HMRC confirming affiliation via national insurance contributions, or, if you live in France, a copy of your S1 form.

There is information in our help guide to French income tax for more about this and we always recommend taking professional advice in the event of any uncertainty.

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