Sarkozy's investment revenue tax increase could hit Britons
Sarkozy's investment revenue tax increase could hit Britons
Britons who let their holiday homes in France could be affected by Nicolas Sarkozy's recently announced increase in tax on investment revenue. Sarkozy's one per cent tax increase will be applied to property rental income as well as other investment income.
The tax rise in
France has been designed to finance a French welfare plan, reports The Times. The tax, which will bring the total
tax rate on investment revenue to 30 per cent, will be wide ranging and it is thought that it could affect many Britons who let their
holiday home in France during the holiday season.
French officials hope that the
tax increase will generate around €1.5bn per year, However, opponents to the scheme feel that it contradicts Sarkozy's efforts to attract back French tax exiles from, amongst others, Britain,
Switzerland and
Belgium.
The tax rise will finance a back-to-work programme, the
Revenue de Solidarité Active, which will ensure that the income of welfare claimants increases once they find employment; at present some people are better off claiming benefits than in a low-paid job.
It is thought that Sarkozy's scheme will cost roughly €8.5bn per year and the French government will generate the remaining €7bn by abolishing some of the existing benefits.
This story was brought to you by holiday
lettings.co.uk, the UK's No.1 holiday home website.
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