France - UK owners of property in France who use it as a holiday home rather than their permanent residence, and in particular if they rent it out, should know that the French Tax Bill which introduced social taxes for rental income, and capital gains to non-resident individuals came into force on 18th August 2012. The succession tax allowances for individuals (eg spouse and children) inheriting French property also reduced.
If anyone with property in France has not already taken advice on how to report local income, or to mitigate tax on gifts, or following death, we can recommend experts in France.
USA – for US taxpayers including US Citizens resident outside the USA, the Gift and Estate Tax allowances may reduce from $5,120,000 to $1,000,000 from 1 January 2013. This is the default position if new legislation is not agreed before then. The top rate of tax may also increase from 35% to 55%.
Anyone who may be affected should think about making gifts before the deadline.
For further information or advice please contact