1c: Capital gains realised in the course of an agricultural, craft, commercial, industrial or liberal activity

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151 septies151 septies A151 septies B151 sexies

Article 151 sexies

French General Tax CodeIn force
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Updated 8 Nov 2023

I. - The capital gain realised in the context of an agricultural, craft, commercial, industrial or liberal activity is calculated, if the property sold has been included in the taxpayer's private assets for part of the time elapsed since its acquisition, in accordance with the rules of articles 150 U to 150 VH, for the part corresponding to this period. This part is exempt if it is agricultural land that does not fall within the scope of A of article 1594-0 G and is farmed by a farmer who has carried out his activity as his main occupation for at least five years. Expropriated land that does not meet the conditions mentioned in Article L. 322-3 of the Code de l'expropriation pour cause d'utilité publique shall not be considered as property falling within the scope of A of Article 1594-0 G.

II. - The capital gain realised on the disposal of shares or corporate units leased under the conditions of articles L. 239-1 to L. 239-5 of the French Commercial Code, or that realised in the context of an agricultural, craft, commercial, industrial or liberal activity, is calculated, if the securities have been included in the taxpayer's private assets for part of the time elapsed since their acquisition, according to the rules of articles 150-0 A to 150-0 E, for the part of the net gain corresponding to that period.

When securities or rights mentioned in article 150-0 A are sold for valuable consideration, having successively formed part of private assets, been entered in the assets of a company or considered as assets allocated to the exercise of the profession pursuant to the provisions of articles 93 or 151 nonies or have been leased under the terms of Articles L. 239-1 to L. 239-5 of the French Commercial Code, and then returned to private assets, the net gains are made up of the sum of the net gains relating to the periods during which they were held in private assets, calculated in accordance with the rules set out in Articles 150-0 A to 150-0 E.

A decree in the Conseil d'Etat shall set out the conditions for the application of this II.

Mariela Petrova

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A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

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Mariela Petrova

Mariela Petrova

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Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

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