Selling Property and returingin to the UK

[JAW123]

Hi

Does anyone know if I have to pay tax in the UK for bringing money back from the sale of my property in France after paying Capital Gains Tax here in France.  Also because I was widowed my sons own part of my property and want to make it straight back to me upon completion - The Notaire said she can do this, if she receives a signed letter from them - does anyone know if I have to pay Gift Tax on this.

Thank

 

[Babbles]

You have to declare to the tax authorites it but there will probably nothing to pay CGT wise I don't know about the gift element , just check when you complete on the sale which  country you live, if you have already moved back to UK and are declaring your tax here you will pay less tax in france (max 16% pending on how long you have owned the property) if for tax purposes you still live in France you have to pay an extra 11% on top of the 16%. I am assuming this is a second home as you shouldn't pay CGT if its yourr main home. Saying all this as your sittuation is a little complicated I would urge you take professional advice. From our recent sale I wouldn't trust what the Notaire says speak to someone independantly

[giantpanda]

Hi!

If it had been your main résidence ( and not that of your sons ) you would not have to pay CGT ( even if you have gone back to GB, as long you have not rented the house ) and have put in on the market around one year ago or even a little longer under certain conditions..

Yours sons would have to pay however capital gains tax, with 10% per year knocked off after the 6th year of possession.

Further there would be a 1% tax to pay on the sales value, for the " control of the added value ).

Yours,

giantpanda

PS. If they gave you the rest of the house before the sale, that would not avoid the CGT question ( it will be considered as " abus de droits "). There has to be a reasonable time lapse between donation( and the house should have not been on the market at that time )  and sales.

[woolybanana]

The 1% is only payable on values over 150000€ and can be avoided if you agree things with the tax authorities at the time

 

[parsnips]

[quote user="JAW123"]

Hi

Does anyone know if I have to pay tax in the UK for bringing money back from the sale of my property in France after paying Capital Gains Tax here in France.  Also because I was widowed my sons own part of my property and want to make it straight back to me upon completion - The Notaire said she can do this, if she receives a signed letter from them - does anyone know if I have to pay Gift Tax on this.

Thank

 

[/quote]

          Regarding possible gift tax between your sons and you there is a tax free allowance of €151950 for each son's gift.I'm fairly sure that capital gains tax on real estate is only payable in the country where the property is situated , but you could confirm this with an(anonymous general enquiry) call to the UK revenue . 

[dr orloff]

I am assuming from the fact that you paid capital gains tax in France on a French property that you have remained UK resident for tax purposes.  UK capital gains will be chargeable, but the amount of tax paid in France will be deducted from your UK liability.  So there may be a residual, or you may have nothing further to pay.