\n\t\t\t\t\t\t\t\t\t
\ud83d\udc49 The 2025 Finance Act modifies the\ud835\udc1c\ud835\udc1a\ud835\udc25\ud835\udc22\ud835\udc2d\u00e9 \ud835\udc1d\ud835\udc2e \ud835\udc0b\ud835\udc0c\ud835\udc0d\ud835\udc0f upon resale of the property \u2714\ufe0fThe calculation of capital gains realized by professional (LMP) and non-professional (LMNP) furnished property landlords has been standardized.\ud83d\udc49 Reminder: The LMP regime applies to individuals who: \u2714\ufe0fHave income from furnished rentals within the tax household that is >23,000\u20acAND\u2714\ufe0fIncome from furnished rentals is > to the tax household\u2019s professional income \u2757 Otherwise, the LMNP tax regime applies.<\/p>\n
\ud83d\udc49The LMP and LMNP tax schemes are very attractive because they allow you to depreciate the property to eliminate all or part of the taxable rent.
\u2757Unlike the property income tax regime for unfurnished rentals, which does not allow for depreciation of the property.<\/p>\n
\ud83d\udc49If the property is resold, the LMNP owner is eligible for tax deductions based on the length of ownership for individuals: \u2714 Capital gains tax exemption after 22 years of ownership\u2714 Exemption from social security contributions after 30 years<\/p>\n
\ud83e\udd28 Before the 2025 Finance Act: Individuals were not required to add back depreciation \u2714 Going forward, the calculation of capital gains for LMNP properties will be aligned with that for LMP properties, with depreciation added back to the acquisition price, thereby increasing the taxable capital gains base \u2714The capital gain will now be calculated as follows: Sale price \u2013 Net book value (Purchase price \u2013 Depreciation)\u2757 However, the tax rate remains at 19% for income tax plus 17.2% in social security contributions<\/p>\n
\ud83d\udc4d The FareWell team has always specialized in furnished rentals. We\u2019re here to help and offer advice. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t <\/div>\r\n <\/div>\r\n \t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"
\ud83d\udc49 The 2025 Finance Act modifies the\ud835\udc1c\ud835\udc1a\ud835\udc25\ud835\udc22\ud835\udc2d\u00e9 \ud835\udc1d\ud835\udc2e \ud835\udc0b\ud835\udc0c\ud835\udc0d\ud835\udc0f upon resale of the property \u2714\ufe0fThe calculation of capital gains realized by professional (LMP) and non-professional (LMNP) furnished property landlords has been standardized.\ud83d\udc49 Reminder: The LMP regime applies to individuals who: \u2714\ufe0fHave income from furnished rentals within the tax household that is >23,000\u20acAND\u2714\ufe0fIncome from furnished rentals […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rs_blank_template":"","rs_page_bg_color":"","slide_template_v7":"","footnotes":""},"categories":[95],"tags":[],"class_list":["post-20230","post","type-post","status-publish","format-standard","hentry","category-wealth-taxation"],"yoast_head":"\n
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