Summary
On 24 August 2011, François Fillon, Prime Minister of
France, announced a series of austerity measures aiming at reducing
the French budget deficit by levying €12 billion of
additional tax revenues. These measures were adopted on an
emergency basis by the French Parliament on 8 September in the
context of a second modified Finance Law for 2011 which was
published on 19 September. They are therefore now in force.
In addition to a series of measures concerning individuals,
details of which are not provided in this summary (but which
include changes to the rules on taxation of capital gains on real
estate and an increase in social contribution levies), two measures
should be given particular attention given their immediate impact
in terms of cash flows and valuation of investments: the
modification of the rules relating to loss carry forwards and the
changes to the participation exemption regime (capital gains on
transfer of substantial shareholdings).
