Capital gains exemption on property sales to social housing bodies and reduced corporate tax rate on these sales

Article 34 of Act No. 2005-841 of 26 July 2005 exempts from income tax individuals' capital gains on the sale of property to a social housing body (HLM), a semi-public company managing social housing or an approved body (Article L. 365-1 of the Construction and Housing Code), for sales made before 31 December 2007 (General Tax Code, Art. 150 U, II, 7°). For companies subject to corporate tax, net gains on the same sales are taxed at the reduced rate in Article 219, IV (Art. 210 E, III). The Government was to submit an evaluation report before 1 October 2007.