French executives and high net worth individuals are in line for large capital gains tax boosts under two separate government reforms design...

French executives and high net worth individuals are in line for large capital gains tax boosts under two separate government reforms designed to widen share ownership and to reverse the country’s brain-drain that has seen a millionaire a day quit the country on average since 1997. Thierry Breton, France’s finance minister, has announced plans to abolish capital gains tax on shares owned for at least eight years in an amendment to the 2006 budget. The amendment would separately cut France's controversial wealth tax on employee-owned shares held for six years. Under this new proposal 25 per cent of the value of an employee's shareholding will be subject to the wealth tax from next year, compared with 100 per cent currently. The change would greatly benefit those of France's corporate bosses with significant stakes in their companies. The proposals are part of a high-level tax reform initiative recently unveiled by the French government under which no taxpayer should receive a bill for more than 60 per cent of their income. France's wealth tax has been criticised for driving away some of the country's wealthiest families. According to a survey in Challenges, the French weekly magazine, 13 of the country's 25 wealthiest families have either partially or entirely left the country because of the tax burden.