Tax on rental income is set to leap from 20% to 35.5%, while capital gains tax on property sales would rocket from 19% to 34.5%. For a UK resident this tax is offset against UK income tax. For most higher rate taxpayers this will make no difference as UK rates are 40% to 50%, so it just means more tax goes into the French coffers and less to our hard-pressed exchequer!
The inheritance tax-free allowance between parents and children of about €160,000 (£134,000), available to any child of the deceased, is expected to be slashed to €100,000 (£79,413). The moves are part of a wider series of increases set to be voted through in the French parliament soon, designed to produce €7.2bn (£5.8bn) to plug a massive budget deficit.