In France, the 2013 and 2014 finance laws have reformed the taxation of capital gains and losses on securities. The 2015 finance law does not make any changes. These finance laws were based on the idea that financing companies by investing in shares, should be encouraged as it is the least expensive and the most perennial solution on a long term basis.

Three measures were taken in this context:

  • Concerning the gains: simplify the process in order to encourage the retention of shares over time.
  • Concerning the financing of SME and ETI: to launch the SME Stock Exchange by Euronext.
  • Finally, a reform of the PEA on two levels: a ceiling increased to 150.000 euros for the PEA; the creation of a PEA SME, intended to support investment of savings in shares of mid-size companies. The ceiling of the PEA SME being capped at 75.000 euros.


The videos (exclusively in French) present the main changes introduced with the 2016 French Finance Act (Loi de Finance).

Significant changes have been made to the method for calculating capital gains and losses.

The French State Council (Conseil d’Etat) changed the taxation rules for capital losses on November 12, 2015, withdrawing the application of taper relief for capital losses, which can be carried forward over 10 years (arrangements unchanged). Henceforth, the taper relief will be applied to the net gain after allocating capital losses, rather than the capital losses recorded on sales of securities.

Note that these presentations do not constitute personal tax advice.


individual shareholders