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Comments

Paul L Davies

The cgt changes on second homes are effectively a retrospective tax. People have invested on the basis of a set of exemptions which are now being removed after they have been lawfully acquired. It is like a bank removing interest payments which it has already paid.

Rob (OurFrenchGarden)

Paul L Davies' comment above is spot on.

It is indeed a retrospective tax. Where else can such a principle apply? Surely any changes should affect future purchases with notice, not anything sold which could have been purchased many years ago under a good CGT incentive.

Is it legal?

Simon

Craig, how did you calculate 20 000 in your example?
Is it not 500k -250k * 20% = 50 000 euros potential cost?

Guillaume Barlet

@Simon

Hello,

In addition to the deductions, other amounts are deducted from the capital gain such as works carried out on the property. The application of the 19% tax is therefore made on less than the difference between the purchase price and the sale price.

In any case, the system explained above has been abandoned for another one.

I hope this helps.

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