Accredited Fiscal Representative<\/a> and paid by your Notary at the time of the sale.<\/p>\nAs a matter of fact, and direct consequence of Brexit<\/strong>, UK tax residents who have sold their property in France<\/strong> have supported a 17.2% social charges on the taxable capital gain<\/strong>, part of which may me refund through a claim.<\/p>\n![\"\"](\"https:\/\/gpb-accredite.com\/wp-content\/uploads\/2022\/02\/Refund-of-Social-Charges--300x181.jpg\")
<\/p>\n
What social contributions on real estate capital gain?<\/h2>\n
Before Brexit<\/strong>, UK residents<\/strong> used to pay Social Charges on capital gain tax at the favourable rate applicable to all United Union members (7,5% instead of 17,2%).<\/p>\nAs a former consequence, UK taxpayers would only be liable for social charges<\/strong> up to 7.5%.<\/p>\nSince Brexit, not only UK tax residents<\/strong> selling a property in France have now the obligation to appoint an Fiscal Representative<\/strong> to assist calculate the capital gain tax through their sale, but they also support social charges the higher rate applicable to non-EU members (17,2%).<\/p>\nWhat Social Charges on property gains stand for?<\/h3>\n
You shall not ignore that since 1st<\/sup> January 2021, the full consequences of Brexit<\/strong> have been triggered.<\/p>\nIndeed, UK tax residents<\/strong> that are in the process of selling a property in France shall therefore comply with the following obligations.<\/p>\nThe first one of them shall be to appoint a Fiscal Representative<\/strong> to help and assist the Notary<\/strong> Public to calculate the capital gain tax.<\/p>\nSuch calculation provided by your Fiscal Representative<\/strong> would imply to determine a taxable basis, on which the UK resident would be liable for capital gain tax (19%), and social charges<\/strong>, now taxed under the full rate of 17,2 %.<\/p>\nSuch rate increase corresponds to the fact that social charges for UK residents do not only correspond to the solidarity levy<\/strong> (7,5%) as it was the case before Brexit, but also to CSG<\/strong> (9,2%) and CRDS<\/strong> (0,5%).<\/p>\nAs a consequence, the effective total rate on capital gain tax has increased from 26.5% to 36.2%. However, the 9,7% additional taxation effectively supported in addition since Brexit may now be refund through a tax claim<\/strong>.<\/p>\nWhat changes in the French Tax Administration\u2019s position regarding UK tax residents?<\/h2>\n
French Tax Authorities have recently published on their online<\/p>\n
website in the frequently asked questions (FAQ), that the refund of CSG and CRDS<\/strong> may be claimed by UK tax residents that have effectively supported social charges at the full rate<\/strong> through their real estate sale<\/strong>.<\/p>\nIt is however not easy to understand the legal scope of the frequently asked questions (FAQ) from the French Tax Authorities\u2019 online website<\/p>\n
One shall keep in mind that French case law provides that the FAQ do not contain mandatory provisions of a general tax nature.<\/p>\n
However, in the specific context where FAQ reveals in itself a position of the administration, it shall be viewed as containing mandatory provisions.<\/p>\n
How to obtain a social charges refund?<\/h2>\n
As an Accredited Fiscal Representative, we were and are still in charge of multiple real estate sales<\/strong> that implies UK<\/strong> tax residents. We are also in direct contact with The French Tax Administration and exchange with its direction to discuss their expectations regarding Tax regulation.<\/p>\nAs such we have the experience of supporting documents (legal, accounting, social) that the Fiscal Authorities expect in order to grant social charges refund<\/strong> to UK tax residents.<\/p>\nOne shall keep in mind that once the claim filled, the administration does provide us with an automatic immediate answer, but they usually respond fairly quickly to our refund requests.<\/p>\n
Please also note that the social charges partial refund is exclusively based on CSG<\/strong> and CRDS<\/strong> (9,7% out of the 17,2% full rate) supported by UK residents.<\/p>\nContact our team to file your claim on your behalf: info@gpbaccredite.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Refund of Social Charges incurred on French capital gain tax (CGT) As a UK tax resident, whether you are an individual, or shareholder of a French SCI, the following tax update may draw your attention. Indeed, as a person that may have sold a property in France, you may be eligible to claim a partial […]\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-684","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/gpb-accredite.com\/en\/wp-json\/wp\/v2\/pages\/684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gpb-accredite.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/gpb-accredite.com\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/gpb-accredite.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/gpb-accredite.com\/en\/wp-json\/wp\/v2\/comments?post=684"}],"version-history":[{"count":1,"href":"https:\/\/gpb-accredite.com\/en\/wp-json\/wp\/v2\/pages\/684\/revisions"}],"predecessor-version":[{"id":685,"href":"https:\/\/gpb-accredite.com\/en\/wp-json\/wp\/v2\/pages\/684\/revisions\/685"}],"wp:attachment":[{"href":"https:\/\/gpb-accredite.com\/en\/wp-json\/wp\/v2\/media?parent=684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}