Brussels, 30/05/2013 (Agence Europe) - On Thursday 30 May 2013, the European Commission decided to refer France to the EU Court of Justice for discriminatory tax rules on new residential property. The French rules allow investments in new residential property in France to benefit from accelerated depreciation, but do not allow the same for similar investments abroad.
The French tax provisions allow accelerated depreciation to be applied to new residential property in France which is intended for letting for a minimum of 9 years. This results in favourable tax treatment for these investments. By contrast, a French taxpayer who invests in residential property to let in another EU member state cannot benefit from accelerated depreciation, and hence cannot enjoy the same tax benefits. In practice this means that taxpayers investing the same amount in immovable goods abroad would face a higher tax liability.
United Kingdom. The Commission has also asked the United Kingdom to alter its rules so that the owners of leisure boats, such as yachts, are not allowed to buy low-duty fuel, which is only allowed for the owners of ships and boats laid down in EU Directive 95/60. (MB/transl.fl)