Exceptional allowance on capital gains from selling built property in major urban development or territorial revitalisation areas

Article 38 of the 2021 Finance Act reinstates Article 150 VE of the General Tax Code: an allowance applies to capital gains on the sale of built property located in a major urban development operation (GOU) or territorial revitalisation operation (ORT). The sale must follow a sale agreement dated between 1 January 2021 and 31 December 2023 and be completed by 31 December of the second following year. The buyer undertakes to demolish the existing buildings and to build, within four years, multi-unit residential buildings of at least 75% of the maximum authorised size. The rate is 70%, raised to 85% if the buyer commits to at least 50% social or intermediate housing. Sales to relatives of the seller are excluded; a fine of 10% of the price applies if commitments are not met.