Property transfer.

[James2]

Hello,

Please advise, if I transfer my holiday home in France into my son`s name, would I need a french solicitor or can I engage an english solicitor?

Also, if I transfer into my son`s name, does the 30year rule apply before capital gains tax is liable, start from when I purchased the property or from the date of transfer?

                               Here`s hoping I make sense

                                                       James2

[parsnips]

[quote user="James2"]

Hello,

Please advise, if I transfer my holiday home in France into my son`s name, would I need a french solicitor or can I engage an english solicitor?

Also, if I transfer into my son`s name, does the 30year rule apply before capital gains tax is liable, start from when I purchased the property or from the date of transfer?

                               Here`s hoping I make sense

                                                       James2

[/quote]

Hi,

       To transfer the property you must make an "Acte" of donation through a french notaire.   The transfer will be subject to notaire's fees , and free of gift tax up to 100 000€ (provided this is the first notarised gift).    The 30 year rule would start from the date of acquisition by your son , and the value would be the valuation for the gift tax calculation.

[Laurier]

Hi Parsnips

Can I jump in with a question on this pse - Does this apply because the son is a reserved heir?

Presume you couldn't do a donation to someone who isn't a reserved heir, without some penalty - maybe the 60%?

Thanks

Laurier

[parsnips]

[quote user="Laurier"]Hi Parsnips

Can I jump in with a question on this pse - Does this apply because the son is a reserved heir?

Presume you couldn't do a donation to someone who isn't a reserved heir, without some penalty - maybe the 60%?

Thanks

Laurier[/quote]

Hi,

    Correct.  As a reserved heir the son has 100 000€ free of gift/inheritance tax .  However , if the donor should die within 15 years of the gift , the amount of allowance used to cover the gift would not be available to set against any inheritance.

   Gifts to other relations or non-relations are subject to the same rules as inheritance tax , except that the 1594€ tax free on legacies to non relations , is not available on gifts, and there are certain special tax free cash gifts that can be given to children and grand children.

    Donations of french real estate to non-relations cannot avoid the appropriate gift tax , but gifts of non real estate to UK residents made in the UK in the form of cash ,cheque ,or kind are not declarable by the donor , and are unlikely to be declared in France by the UK resident recipient. 

       

[Laurier]

Thank you once again!

Laurier