French General Tax Code
In forceI. - The benefit of the provisions of Article 156 specific to buildings classified or registered as historic monuments, or having received the label issued by the Fondation du patrimoine pursuant to article L. 143-2 of the French Heritage Code, is subject to the owner's undertaking to retain ownership of these properties for a period of at least fifteen years from the date of their acquisition, including where this was prior to 1 January 2009.
II. - The benefit of the provisions of Article 156 specific to buildings classified or registered as historic monuments, or having received the label issued by the Fondation du Patrimoine pursuant to Article L. 143-2 of the Heritage Code, is not open to buildings held by non-trading companies not subject to corporation tax.
The first paragraph of this II does not apply to buildings held by non-trading companies not subject to corporation tax:
1° When the building is, in whole or in part, classified or registered as a historic monument and is used, at the latest within two years of the date of its entry into the assets of the non-trading company, for residential purposes for at least 75% of its living space. In this respect, buildings or parts of buildings intended for commercial or professional use are not considered to be used for residential purposes;
2° Or where the monument has been the subject of an order classifying all or part of it as a historic monument and has been used for at least fifteen years as a non-commercial cultural space open to the public;
3° Or where the partners are members of the same family.
The second to fifth paragraphs of this II apply on condition that the members of these companies undertake to retain ownership of their shares for a period of at least fifteen years from their acquisition. The undertaking to retain by the members of a company formed between members of the same family is not broken when the units are sold to a member of that family who takes over the undertaking previously entered into for its remaining term.
Where, in the situation referred to in 1°, the members who are at the origin of the formation of the company are legal persons under public law or semi-public companies, the first paragraph of 3° of the I of article 156 may apply to the income for the year in which the shares are acquired by natural persons in respect of the property charges borne by the company between the date of the declaration of the start of construction provided for in article R.* 424-16 of the town planning code and that of the acquisition of their shares by the individuals concerned, provided:
a. - the shares were acquired no later than 31 December of the second year following the year in which the aforementioned building site declaration was made;
b. - and that these expenses have been fully reimbursed to the company, in proportion to their shares, by the individual members.
III. - Where applicable, the overall income or net property income for the year in which the commitment mentioned in I or II is not complied with and for the following two years is increased by one third of the amount of the charges wrongly deducted.
This increase is not made in the event of redundancy, disability corresponding to classification in the second or third of the categories provided for in the article L. 341-4 of the Social Security Code or the death of the taxpayer or of one of the spouses subject to joint taxation, or in the event of a gratuitous transfer of the property or shares provided that the donees, heirs and legatees take over the commitment previously entered into for the period remaining on the date of the gratuitous transfer of the property.
IV. - The first paragraph of II does not apply to properties acquired before 1st January 2009 by companies not subject to corporation tax, including when this acquisition only relates to a dismembered ownership right.
V. - The benefit of the provisions of article 156 specific to buildings classified or registered as historic monuments, or having received the label issued by the Fondation du patrimoine in application of article L. 143-2 of the code du patrimoine, is not available to buildings that have been the subject of a division as from 1st January 2009 unless the building is, in whole or in part, classified or registered as a historic monument and is allocated, at the latest within two years of the date of division, to residential use for at least 75% of its living space. In this respect, buildings or parts of buildings intended for commercial or professional use are not considered to be used for residential purposes.
