Brisith taxpayers : The French tax authorities have recently clarified some good news for British taxpayers
They can be exempted like European non-residents from CSG/CRDS on income from assets as of January 1, 2021. This measure applies to property income or capital gains.
As a reminder, Article 26 of the LFSS for 2019 provided that persons domiciled in France for tax purposes or not, who are covered by a social security scheme within the EEA or Switzerland, will be exempt from CSG and CRDS on their income from assets (property income, life annuities for valuable consideration, etc.) and on investment income (real estate sales, income from movable property, etc.), provided that they are not covered by a compulsory French social security scheme.
Initially, this measure did not apply to British residents because of the Brexit. They were subject to social security contributions at a rate of 17.2% on capital gains generated by the sale of real estate in France or the receipt of income from real estate.
From now on, only the solidarity levy of 7.5% is due
Thus, in view of the agreements on the exit of the United Kingdom from the European Union signed on November 12, 2019 and December 30, 2020, this measure is applicable to income from property received as of January 1, 2021 for taxpayers who meet the following conditions:
– They are affiliated to the British social security system;
– They are nationals or legal residents of France, the United Kingdom or another European Union member state;
– They are not dependent on a French compulsory social security scheme.
More importantly, it is possible to obtain a refund of the levies wrongly paid since January 1, 2021 within the claim period.
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