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Where Taxpayers and Advisers Meet

Selling French Main Residence after Relocation back to UK

Paddy96
Posts:1
Joined:Wed Jul 26, 2017 2:16 pm
Selling French Main Residence after Relocation back to UK

Postby Paddy96 » Wed Jul 26, 2017 2:27 pm

Hello,

I returned to the UK full time in 2015 after 13 years in France and have now (almost) sold what was my main residence there - I'm unsure about capital gains here though - is there a period allowed to sell a main residence after relocation or did it automatically become a second home the minute I came back and therefore liable to CGT?
As my main residence is now here I have to pay CGT in France and any materials I bought - such as all the tiles to re roof the house - were not deductible in France - if I have to pay CGT here would they be?

Thanks in advance.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Selling French Main Residence after Relocation back to UK

Postby maths » Wed Jul 26, 2017 7:34 pm

If the French property was throughout your period of ownership your sole or main residence then any capital gain on sale is not subject to UK CGT. In essence, you also have 18 months after vacating the property as your residence to sell without a UK CGT charge.

StraussDiana87
Posts:1
Joined:Tue Aug 01, 2017 10:26 pm

Re: Selling French Main Residence after Relocation back to UK

Postby StraussDiana87 » Tue Aug 01, 2017 10:39 pm

You should have a look at the UK/French tax treaty. Your main residence is based in France so that it is probably uniquely taxable in France. Secondable, in France, therei is a tax exemption when the residence is the main residence, so that, maybe, you are not taxable at all (not in France because of the local rules and not in the UK because of the tax treaty).

darthblingbling
Posts:698
Joined:Wed Aug 02, 2017 9:09 pm

Re: Selling French Main Residence after Relocation back to UK

Postby darthblingbling » Thu Aug 03, 2017 11:21 am

If it was your main residence then you basically have 18 months in which to sell before CGT will begin to be chargeable. If you rent the property out you may also get some letting relief.

In France, relief is given on the length of ownership. I'm not 100% on this but I think for the first two years you are liable to 100% of the gain, then after that the gain can be reduced by 5% per year. After 22 years there should be no gain left.

The double tax treaty will likely say that the gain may be taxed in France, which means France will have primary taxing rights but you are still liable in the UK so any tax paid in France can be used as a credit in the UK on the same gain.


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