KIKI Posted March 20, 2008 Share Posted March 20, 2008 We are moving to France to live in July 2008 and will rent for 1 year or so. We will register as french residents and pay french tax(I am french myself and my husband is english); our UK house is on the market and may not sell until we are registered in France; it is our one and only house that we have owned for 8 years. Will we be liable to Capital Gain Taxes on the sale of our UK house? I heard about a new treaty between France and UK that will come into force in france from 01/01/09 about CGT?Could you help us about this matter, thank you.Kiki. Link to comment Share on other sites More sharing options...
Pickles Posted March 20, 2008 Share Posted March 20, 2008 [quote user="KIKI"]Our UK house is on the market and may not sell until we are registered in France; it is our one and only house that we have owned for 8 years. Will we be liable to Capital Gain Taxes on the sale of our UK house?[/quote]No. Letting it out might make a difference.RegardsPickles Link to comment Share on other sites More sharing options...
Cat Posted March 20, 2008 Share Posted March 20, 2008 The 2004 UK/France Double Taxation Convention has been signed, but is still not yet ratified, and so the 1964 (?) treaty is still in place. I have seen no reliable reports of when the new treaty is expected to be ratified, but some say it could be as late as 2012.In a nutshell, the current situation is that if you are resident in France, a legal loophole allows the sale of your principle UK property without incurring CGT.For more details see here http://www.completefrance.com/cs/forums/595156/ShowPost.aspx or here http://www.completefrance.com/cs/forums/585657/ShowPost.aspx Link to comment Share on other sites More sharing options...
Judie Posted March 20, 2008 Share Posted March 20, 2008 You also have a let out, in that during the final three years of ownership of your principal private residence, you do not need to reside in the property.We did something similar, moved over to France, rented out our UK house for 18 months then sold it - no CGT. Link to comment Share on other sites More sharing options...
Maria Posted March 22, 2008 Share Posted March 22, 2008 Judie I know that is the rule in the UK but is there a similar rule in France? And if so, will they apply the rule when it's a UK and not a French property? (ie under the new treaty, when it comes in, since it seems if the UK rules don't get you the French rules will, and vice versa!) Link to comment Share on other sites More sharing options...
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