Firstly, the tax rates and social charges will change on certain
sales after the Brexit date, but worse, the notary will no longer
be able to file the capital gains tax return for the non-resident
The followig analysis is siubject to any transitional ot
implementation arrangements in the Withdrawal Agreement but more
importantly the negotiations to follow under political framework
statement of which the present version can be found here.
The following is subject to that, and the inevitable French
inability to respect European Union rules in tax matters involving
a European principle whioch is not on the face of it mandatory.
In principle, any sale completed after the Brexit date by a
United Kingdom resident will need, after signature to be put
through what is known as a fiscal representative who will vet and
prepare the French capital gains return and submit it. A few
notaries might be prepared to take the risk of putting a simple and
straightforward declaration through after Brexit during the period
of adjustment, but that is by no means a reliable option. The same
rule applied to Jersey, Guernsay and Isle of Man residents prior to
Brexit, as they were not considered resident in an EEA state.
Whilst it is possible to negotiate which items are deductible
from capital gains to arrive at the French chargeable gain, the
function of a fiscal representative is that of a
quasi-functionary working with or rather on behak of the Tax
Administration by whom they are licensed.
What is more there is an extra fee charged for this
A sale by an individual is one thing, however a sale by a
non-resident company or by a French Société de personnes such as a
non-trading Sarl or SCI is also subject to this procedure when
there is a non-EEA resident associé, if you prefer member.
At at point, there is a difference of treatment where the
company is trading or not, in other words whether it lets the
property out. In that case, it should be possible to incorporate
the capital in in the year-end declaration, but we will need to
await legislative changes or confirmation from the French tax
administration on Brexit to confirm that in each case. However as
you should know, an SCI's or an Sarl's taxable results are
calculated at the level of the company but then are chargeable to
the non-resident member directly.
Certain Fiscal Representatives are more realistic than others,
and may be prepared to argue on behalf of the vendor. However, they
take the risk of being examined more closely as to their status as
It is essential to ensure that the window of opportunity is not
lost, and that any sale negotiated is completed before the
United Kingdom officially leaves the European Union. Even the date
of 31st October / 1st November is not fixed in stone.
If you have a query, please contact Peter Harris for
assistance in this area.
+ 44 1534 625879 or