CGT on French Property

[Ravello]

I'm in the process of selling a property in France that I've held for over 15 years, in that time it's increased a fair bit (approximately tenfold). Has anyone been through this process or anyone aware of the tax liability I may incur? Having held it for over 15 years I'm fairly certain I'm not liable for the French equivalent of Capital Gains Tax, but I don't know how I stand with regards UK taxation.

My intention would be to bring the funds from the sale back into the UK, though if beneficial I could hold the funds in France for the time being.

Thanks

[BlasterBates]

French capital gains tax

If this isn't your primary residence looks like you may be liable.

Generally CGT on property is usually in the country where the property is; usually it has no implications in other countries.

[Ravello]

Thanks for the link. Having already spoken to (and paid) the agent, I think I'm exempt from the French CGT due to the length of time I've held the property, and the off-set against the government index.

In which case, it sounds like I'm home free from a UK tax perspective!?

[slackbloke]

Thanks for the link. Having already spoken to (and paid) the agent, I think I'm exempt from the French CGT due to the length of time I've held the property, and the off-set against the government index.

In which case, it sounds like I'm home free from a UK tax perspective!?

No, you are liable to UK CGT. UK CGT applies to the sale of all assets worldwide. If you sell a property abroad you are liable to both UK CGT and local CGT laws but you can get foreign tax relief (if you had paid any).

This is on the assumption you are a UK residence for tax purposes and the property is a second home

[expat]

Thanks for the link. Having already spoken to (and paid) the agent, I think I'm exempt from the French CGT due to the length of time I've held the property, and the off-set against the government index.

Exempt from French CGT? Why?

If it is not your primary residence on the day of the sale, you are liable for French CGT. No pro-rata, nothing about length of time of ownership.

I suppose if it hasn't actually increased in value much in real (house) terms, you might not have enough (real) gains to pay tax on. At any rate, if you have paid the notaire the amount due then it is done.

[BlasterBates]

Thanks for the link. Having already spoken to (and paid) the agent, I think I'm exempt from the French CGT due to the length of time I've held the property, and the off-set against the government index.

In which case, it sounds like I'm home free from a UK tax perspective!?

Only accept the advice of a registered French tax advisor. Agents can't give you accurate advice. This sale will automatically be registered with the French authorities, and since you aren't registered in France I would suspect they wouldn't accept the argument that this is your principle residence. You may get a nasty letter. Being abroad won't stop them chasing you.

[Ravello]

Only accept the advice of a registered French tax advisor. Agents can't give you accurate advice. This sale will automatically be registered with the French authorities, and since you aren't registered in France I would suspect they wouldn't accept the argument that this is your principle residence. You may get a nasty letter. Being abroad won't stop them chasing you.

I'd agree with what you say about Agents from a UK perspective, but in France the Agents (Notaires) have increased authority, and the (quite sizeable) fees are paid up front.

Exempt from French CGT? Why?

If it is not your primary residence on the day of the sale, you are liable for French CGT. No pro-rata, nothing about length of time of ownership.

I suppose if it hasn't actually increased in value much in real (house) terms, you might not have enough (real) gains to pay tax on. At any rate, if you have paid the notaire the amount due then it is done.

Thanks expat. From what I understood from the link provided by BlasterBates the value of any increase in property is calculated against the general property index and CGT is only paid on increases over and above those values.

edit: either way, having paid the notaire already I think, as you say any charges have already been levied.

It is however not my primary residence, so I'm presuming from Slack bloke's comments that I will therefore be subject to UK CGT

[AlfredJPruffock]

Whoops - I though this thread was about French Poetry.

Baudelaire anybody ?

[ThomasSoerensen]

I thought CGT was a Carrera GT - a very nice Porche

[BlasterBates]

Having already spoken to (and paid) the agent

think I'm exempt from the French

Why aren't you absolutely certain?

It is up to you, but a notaire isn't a tax expert he's a legal expert, anyway if your happy. With the sums involved though you really need to be sure.