cost on resale of the building, thus reducing the capital gain by an equivalent amount, but the fact that part of maintenance expenditure is not deductible discourages private individuals from purchasing old properties in a poor state of repair.

      N.B. The names of those present at the meeting are printed in italics

1 Scotland and Northern Ireland apply different protection rules.

2 Traditional grain lofts built on stone pillars

3 Costs which in France are treated as expenses deductible from taxable income are taken into account under a system of tax credits in Spain, since, with the exception of losses attributable to given categories of income or carried forward, no expense is deducted from overall income.

4 Where the property is the owner's main residence, the tax is assessed on the rateable value. If the property is vacant, the tax base is reduced. Conversely, it is increased if the property constitutes a second home. If the property is leased, the tax base in principle corresponds to actual rental income, after deduction of standard costs.

5 Traditionally, the municipal tax on capital gains relating to property was payable irrespective of the reason for the change in ownership. It also applied to successions until 1 July 2000 and donations until 1 January 2001. This tax currently solely concerns property which changes hands for a consideration and is applicable only to capital gains realised prior to 31 December 1992. These transitional arrangements will remain in force until 1 January 2003, from which date no capital gains tax on property will be payable.