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Are you a UK citizen? Did you structure your  purchase of property in France via a simple French company?

If you bought property via registering as a (SCI) you may be affected by changes in French tax law.

UK based individuals who have structured their French property purchases via these structures may be subject to unexpected tax downside as the French authorities look through the SCI for tax purposes but the UK tax authorities do not. This has the potential to create a double tax burden for UK residents.

Property law experts Sykes Anderson Perry said of the matter:

“A recent tax judgement relating to the UK treatment of a US LLC had given some hope to practitioners that HMRC may change its stance on this point which would greatly simplify the position of these individuals. This is because LLCs are in a similar position in that they are treated as transparent in the US but not so in the UK, creating potential double taxation. However, HMRC has been quick to state that the judgement in question was fact-driven meaning that their stated practice on LLCs will be maintained. Presumably this will also apply to their approach on SCIs.”

If you own property via an SCI, you recommend you contact Graeme Perry for advice on how the double tax charge can be avoided.


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