WHERE DO YOU LIVE? CGT MAIN RESIDENCE RELIEF ON MORE THAN ONE HOME — Property Tax Portal (October 2006)

[j.r]

... having read the Tax Article by James Bailey I was wondering whether the same PPR applies to overseas ( French ) property?

[Instinctive]

According to HMR&C's manual,a residence which is outside the United Kingdom may qualify for relief, subject to meeting all the necessary conditions.

The main one, in my mind, is that it must be used as your ''only or main residence''.

You will be aware from the article referred by you that it is possible to make a nomination, subject to conditions, in favour of a residence which is not your main home in reality.

Ramnik

[King_Maker]

But I assume French tax would still apply?

[j.r]

Thanks for the reply. I was curious if my French property could be nominated as my main residence for a week ( as in the article ) and then sold within the 3 year limit. I am aware that I would still have to pay French tax but that would be at a more favourable rate of 16% ( after 2 years of ownership ).

[King_Maker]

To Nominate your French property :

1. You must have used it as a residence. This may subject you to other French taxes.

2. There is a 2 year time limit to do so. It starts from when you have 2 or more residences (not merely properties).

3. Spouses or Civil Partners can only have a single PPR between them.

I suggest you take specialist professional advice.

[j.r]

Thanks for the advice, will look into this in more detail!