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
Any sale completed after Brexit dateby 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