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selling B & B/chambres d'hotes


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Can anyone advise?

Due to circumstances outwith our control we are having to sell our B & B but have discovered we will have to pay an massive amount in tax (we are talking 100,000 grand) because we are selling the business after only owning for 2 years.  If we sell after 5 years we will not have to pay but unfortunately we do have to sell now!

Can anyone advise us on any way we can avoid paying this tax and can anyone recommend a english speaking agent?

thanks

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When you say 100,000 grand do you mean £ or € and also do you mean 100,000 grand in tax or 100,000 grand selling price? Its not clear from your post.[blink]

Remember you only pay tax on profit not selling price!

And as you don't say where you are is hard to anwser your question relating to agents

Chipie

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Can't sell as family home.  We have a separate apartment which is our home.  We are classed as a chambre d'hote but really a small hotel.  That website www.foreignperspectives.com - very confusing site if ever I saw one! All a bit , well "bitty" .  Not sure why you recommended it -  could not find anything about selling agents or advise? Am I missing something?  

 

 

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I assume that because you haven't been in business for 5 years you don't qualify as a Professional Landlord.

Presumably some of the gain comes from the goodwill built up in the business, which would disappear if you sold it as a plain house.

Surely its better to have the liability to pay 27% tax on a gain of £400,000?  rather than have no gain at all, and as a result miss out on the £300,000 that you will be keeping.......

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Sounds wrong to me, unless the B&B was ridiculously expensive to start with ; £400k gains in 2 years is pretty spectacular. Are you sure about the valuation ? If you have renovated a wreck, have you included all the costs.

TBH, if you *have* made £400k in 2 years you can't really complain that much ....

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  • 2 weeks later...
Yes the tax figure which you have quoted reflects the money which you have ,made from the project....but ALL your exspenses must be deducted from the gain....and I believe that if you are selling on the fixtures /fittings and furniture...which you probably are.....every item of that goes in.So your exspenses for works carried ou....new boiler....etc could be very high....and will help greatly to reduce your tax bill.Speak to your Notaire

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[quote user="jon"]Yes the tax figure which you have quoted reflects the money which you have ,made from the project....but ALL your exspenses must be deducted from the gain....and I believe that if you are selling on the fixtures /fittings and furniture...which you probably are.....every item of that goes in.So your exspenses for works carried ou....new boiler....etc could be very high....and will help greatly to reduce your tax bill.Speak to your Notaire
[/quote]

I don't know whether ALL expenses can be deducted from the gain. [8-)]I believe it is only those things which have been done by an artisan and which he has already paid his TVA on. As you said the best thing to do is to give all factures to the notaire and they will sort it out.[:)]

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Ok...yes perhps you need to talk to an account.However we had our house for about 2 years... before we  decided to sell  ...and our Notaire asked for all our bills...re works carried out and  purchased items....incl paint...and furnishings.Thats what I remeber....and the tax was reduced by  afair amount.

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Foreign Perspectives will not tell you how to avoid paying tax, or recommend any english selling agents, so maybe that is why you were confused. Its more a blog.  How many rooms do you have? above 5 you are a hotel and not a chambre d'hote. You do not have to sell as a chambre d'hote at all, sell as a 'building' and not as a 'business'. Thats what we are doing and we have far more rooms than you would have.

You need advice badly...contact a commercial vendor here, not a residential one, they are in all the papers. Try Michel Simmond. Look them up.

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