On November 13, the highest administrative French court, Conseil d’Etat, ruled that the holding period abatement only applies to net gains. Net gains equal to [(capital gains – capital losses) x holding period abatement].

French guidelines which considered that the taxable capital gains were equal to [(capital gains x holding period abatement) – [(capital losses x holding period abatement)] were declared illegal and do no longer apply.

Tax consequences after the change in the method of calculation:

Declared gains and losses on sales:

  • Capital gain of €10,000 after 4 years of continuous ownership (deduction for holding period of 50%);
  • Capital loss of €5,000 after 15 years of continuous ownership (deduction for holding period of 65 %).


Old method:  

[ 10,000 – 10,000 x 50% ] – [ 5,000 – 5,000 x 65% ] = €3,250 to the progressive scale for income tax.


Current method:

[10,000 – 5,000] x 50% = €2,500 € to the progressive scale for income tax.


As a consequence, taxpayer can claim for the reimbursement of the surplus of individual income tax and social security contributions paid on capital gains intervened in 2013 and 2014.

The tax team of Delcade law firm is at your disposal to assist you accordingly.


Co-Founder & Partner - Taxation
Fabrice DELOUIS has been assisting his customers throughout their projects for the past twenty years.

He majored in tax law and obtained a DJCE (Diplôme de Juriste Conseil d’Entreprise/Business Law Consultant Degree). He also holds a Master of business and Tax Law.

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