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France has scrapped plans for a new tax that would have cost British holiday home owners thousands of pounds a year.
The U-turn came after intense pressure on President Nicolas Sarkozy from senior politicians representing expatriates who own properties in France.
The tax had been aimed at foreigners with second homes that remain unoccupied for most of the year.
It would have affected around 360,000 homes - more than half of which are believed to be owned by Britons.
 

Owners would have been charged a tax of 20 per cent of the annual rent that could have been gained from the property.
A four-bedroomed house on the French Riviera could have represented a tax of more than 1,500 pounds a year.
The decision to abandon the charge came after a meeting between President Sarkozy and budget minister Francois Baroin on Saturday.
Political observers said the fact that expatriate home owners will be able to vote for MPs from next year may have prompted the retreat.
 

Olivier Cadic, who represents the UK for the Council for French Abroad, said the tax would have unfairly punished British home-owners who have restored neglected properties and ‘brought vitality back to deserted rural villages’.

He said even if the tax had gone ahead, it could have fallen foul of EU law by discriminating between residents and non-residents.
He wrote on his blog: 'It is contrary to the notion of equality that is written in to the French constitution - namely that this tax would create a special group who would be taxed.
'I am very happy with the decision, which will be a huge relief to non-residents with a second home in France.
'I think June 18 was a particularly good choice of date for the tax to have its Waterloo!'

Sarkozy won power in 2007 promising that taxes would not rise, but he is under pressure as the May 2012 election looms to fend