Computation of capital gain: the legal costs related to the claim for the recovery of an additional sale price are not deductible

24 October 2019

To compute the capital gain on the sale of securities (Articles 150-0 A et seq. of the French Tax Code), the French Supreme Court (Conseil d’Etat) allows the deduction from the sale price of the legal costs directly linked to the sale of the securities.

Only costs that have been incurred in determining the sale price of the shares are deductible. Consequently, the legal costs incurred by the transferor for the recovery of an additional sale price are not deductible from the capital gain (CE 29/05/2019, #414617: RJF 8-9/19, #742).