Hollande changes course on tax on holiday homes

IT looks as though French president, François Hollande, has withdrawn plans to increase taxes on foreign-owned second homes.

The Telegraph website reports on a meeting he had with UK prime minister, David Cameron, and that in a press conference the French president said holiday homes were not going to be taxed more.

The French government had outlined plans that would have seen the tax on rental income rise from 20% to 35.5%, as well as increases to capital gains tax on property sales.

At the time there were more questions than answers, for example the proposals could have been in breach of European rules, and many French people resident overseas could have been hit by the plans.

But until the overarching finance bill passes through the French parliament later this month, will it be clear if François Hollande has scrapped the plans or looked at alternative options.