Our Moving to France guide was last updated in January 2012. Any important changes affecting residents in France will be posted below and incorporated into the next version of the guide.

Formalities

• A ruling by the European Court of Human Rights over the UK’s “15-year rule” on expat voting could be imminent. British resident in Italy, Harry Shindler, who took the UK government to court, says he expects it “any day”. The UK government has told the court that Mr Shindler, 90, is “not a victim”, because, having lost his UK voting rights, he could have applied to become an Italian citizen, but has not.
• People who want to become French have to meet higher standards of French language as of this year – equivalent to the level of a student at the end of collège (age 15). People will need to have a formal qualification proving this, whereas before there was just an interview at the préfecture. There are also plans to test a certain knowledge of French history and culture.

Property

• From this year, the Scellier scheme – money off income tax for purchases of buy-to-let property – is only for new-build homes meeting certain (BBC) energy-efficiency standards. The tax reduction also drops from 22% of purchase price (spread over nine years) to 13%. It will be abolished in 2013. For homes that were reserved by the end of 2011, 2011 rates will apply (22% for BBC homes, 13% for others) if the sale is concluded by March 31.
• Income tax credits for eco-friendly home improvements are expected to be reduced by another 20 after 2011’s 10% cut. More positively, it is planned these will once again become cumulable with the éco-prêt interest-free loan, for households with an income of less than €30,000. It is also planned to increase the reimbursement period for the loan, from April, to 15 years from 10 for people doing a “bouquet” of at least three jobs or increasing the overall energy efficiently of their home.

Tax

• France is expected to clarify soon whether it will tax British pension lump sums received last year. This follows a year of uncertainty and comes just months before people will have to declare their incomes for 2011.
• There are will be changes in capital gains tax on second homes sold as of February 1. There will be a less generous reductions system, with exemption from CGT after 30 years. This replaces the current system of progressive reductions in taxable capital gains after six years’ ownership, which have led to exemption after 15 years’ ownership.
• Social charges on capital income, including capital gains, rents, savings and investments are 13.5% instead of 12.5%, as of 2011’s income, declared this year.
• The fixed rate of the optional taxation-at-source scheme (prélèvement forfaitaire libératoire) has risen from 19% to 24%, apart from for dividends, for which it goes from 19% to 21%.
• Bands for income and wealth tax will be frozen this year and next, so the tax-free allowance and thresholds for entry into higher rates will not rise.

Benefits

• The income ceiling to benefit from the complément du libre choix du mode de garde – help towards paying for childcare – rises by 40% in June for single parents, making it easier for them to benefit. This benefit is also increasing by 30% for families with a disabled adult and young child.
• A new kind of benefit is available for over-60s who have come to the end of their rights to unemployment benefit but have not found a job. The allocation équivalent retraite bridges the gap before the pension.
• The maximum level of the Aspa benefit will go up 4.7% in April for single people.
• Certain benefits such as family allowances and housing benefit will be revalued this year on April 1, not January 1, and based on expected growth (1%) not the expected rise in prices (1.7%).

Pets

• The requirement for a tapeworm treatment will only apply to dogs from January 1. The full details can be found at www.defra.gov.uk/wildlife-pets/pets/travel

Motoring

• The “bonus-malus” scheme, which rewards people who buy “green” cars and penalises buyers of polluting ones, is now less generous. For cars with emissions of 51-60g/CO2/km the bonus has gone from €5,000 to €3,500 (a €5,000 bonus now requires 0-50g). For 60-90g (eg. Renault Twingo or Volkswagon Polo), the bonus goes from €800 to €400; for 91-105g (Citroën C3, Renault Clio) it goes from €400 to €100; 106-110g no longer attracts a bonus. The surcharge now starts at 141g/CO2/km instead of 151g, at €200. It has risen from €200 to €500 for 151-155g; remains at €750 for 156-180g; goes from €750 to €1,300 for 181-190g, from €1,600 to €2,300 for 191-230g (Citröen C6, Land Rover Freelander…) and above this (Porsche Cayenne, Jaguar XK) it rises from €1,600 to €3,600. A previous top band at €3,600 from 231-240g is removed. An annual surcharge for the most polluting cars – at €160 – now starts at 190g/CO2/km instead of 245g/CO2/km.