Selling a property in France

[JPQ]

My father was living in France when he had a stroke in march this year. We have repatriated him to the UK and he is undergoing rehabilitation. He will shortly be discharged from the rehab unit and we are looking at the various options for his accommodation.

It seems the best option for him is to sell the French property and buy him something suitable in the UK.

Can anyone tell me what tax he will pay on the sale of the french property?
He bought it in 2002 and lived there from 2004. It was his primary residence.


Many Thanks,

Joe

[pawncob]

No UK taxes due on the sale. Assuming he's resident in France, there may be French CGT due.

[IanW(fr)]

Hi JPQ,

Provided he was resident for a full tax year in France and completed a French income tax return 'Declaration de Revenue', then his French property will be considered his PPR (Principle Private Residence) and he will be considered fiscally tax resident in France during that period.

Ones PPR is exempt from CGT in France and this relief extends for, I believe, 2 years after you leave France provided you are an EU citizen and your new country of residence is in the EU.

In practice, the Notaire, who acts as tax collector, will require proof of PPR, which is easily provided by the local council tax demand 'Avis de taxe d'habitation' (tax on those in the house) and 'Avis de taxe fonciere' (tax on the land and buildings).

IF you fail to established PPR and there is any CGT (unlikely given the market conditions) then the gain - 'Plus Value' would be taxed at 16% by the French after taper relief which scales down the gain to zero over 15 years - the UK may also seek to charge CGT, however any CGT paid in France would be credited under the UK-France Double Taxation Convention.

You do need to make the French authorities aware that your Father is no longer resident and get confirmation that he will be treated as 'non-resident', there is a special division in Paris that handles all non-residents.

http://www.impots.gouv.fr/portal/dgi/public/particuliers.impot?pageId=part_horsfrance&espId=1&sfid=1250

If he wishes to return, France is a land filled with hypochondriacs and the World Health Authority recently declared France as No.1 for health care; I know many Brits here who can testify to that, surprisingly most doctors and especially consultants are fluent in English, but seldom admit to it in mixed company.

If your Father is over 65 he would qualify for free entry into the French Health scheme, the 'CMU', under the reciprocal UK-France health agreement, an E121 certificate would be supplied by the UK to France which would cover a large part of his health care costs.

Good luck, I wish him well.

I. (NB: I am not a tax expert nor qualified as such, I merely live in France).