Reform of capital gains tax on securities: holding-period allowances and €500,000 fixed allowance for retiring business owners

The 2014 Finance Act reformed the taxation at progressive rates of capital gains on securities. A holding-period allowance of 50% (2 to 8 years) or 65% (8 years or more) applies to gains realised from 2013. An enhanced allowance of 50%, 65% or 85% (1, 4 or 8 years of holding) applies to shares in SMEs less than ten years old, intra-family sales and retiring business owners, the latter also receiving a fixed €500,000 allowance. In return, several exemption or deferral regimes (young innovative companies, family group, deferral subject to reinvestment under article 150-0 D bis) were abolished for gains realised from 1 January 2014.