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:
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.