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Taxes when selling house


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We have a house which is classed and taxed as a 'second residence' or holiday home. We are UK tax payers, I am told that if we sold the house even to buy another in France the taxes on the sale are quite high - can anyone confirm this?

We had thought of divorcing - my wife becomes a French resident and I remain with my business affairs in the UK?
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All I can say is that when my french neighbours divorced, he kept the house and bought her out, but, he had all the expense of the notaires fees again, just like buying a completely different house.

And in your case, could well mean that they would want the taxes anyway.

Talk to a notaire or three about all this, and tread carefully.

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Capital gains tax only applies if the property has increased in value over the period of ownership. There are some allowances for building works (e.g. extensions) and there are reductions in tax after 5 years of ownership.

There is a simulator you can use here

http://www.notaires.fr/fr/les-plus-values-immobili%C3%A8res

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[quote user="tinabee"]Capital gains tax only applies if the property has increased in value over the period of ownership. There are some allowances for building works (e.g. extensions) and there are reductions in tax after 5 years of ownership.

There is a simulator you can use here

http://www.notaires.fr/fr/les-plus-values-immobili%C3%A8res[/quote]

Yes, but if you are UK resident then you will have to pay UK CGT on any gain. And you need to be aware that in order to calculate the gain for UK CGT purposes, you need to convert the Euro original purchase price into GBP at the exchange rate applicable on the date of purchase, and the again to convert the Euro sale price into GBP at the exchange rate applicable on the date of sale (and any improvements need to be converted into sterling at the Euro exchange rate appropriate on the date incurred). This can mean that if you purchased in 2001 and sold for the same Euro value in 2016, there will be a capital gain in sterling because of the appreciation of the Euro against sterling. You will receive a credit against UK CGT for French CGT paid.

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