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The French government has announced that it will not proceed with its proposal to impose an extra tax on owners of property in France who are not resident in the country.

The tax would have meant a 20% surcharge on some 360,000 owners, about half of them British, but it has been judged to be unworkable and to possibly contravene both EU and French law - as well as posing a political threat to President Sarkozy.

Many owners of holiday and letting homes in France will breathe a sigh of relief - and may be pleased to hear that several representations were made in France about the benefits that British owners have brought to the country, especially in regions like Brittany and the south-west.