Barbel Bob Posted September 24, 2009 Share Posted September 24, 2009 Hi,Unfortunately we have to return to the UK due to unforeseen family issues, hopefully not forever! but we have decided to sell our house. We have owned it since Nov 23rd 2007, we moved to france permanently on the 1st Oct 2007.The home is our primary residence, we do not have a house in the UK as we sold before we left. Are we best waiting for Nov 23rd before signing with an estate agent to avoid capital gains?ThanksJ Link to comment Share on other sites More sharing options...
Sunday Driver Posted September 24, 2009 Share Posted September 24, 2009 You are not liable to capital gains on your principal residence. The date you decide to put it on the market is immaterial. Link to comment Share on other sites More sharing options...
Barbel Bob Posted September 24, 2009 Author Share Posted September 24, 2009 Thanks, i was told you have had to of lived in it for 2yrs , good news many thanks. Link to comment Share on other sites More sharing options...
Sunday Driver Posted September 24, 2009 Share Posted September 24, 2009 Your 2008 and 2009 tax bills will provide ample evidence of your residency status. Link to comment Share on other sites More sharing options...
Barbel Bob Posted September 24, 2009 Author Share Posted September 24, 2009 Hi,We did not fill one in during 2008 as we were misinformed and not earning anything. The children have attended school since Oct 2007 so this will proved to have lived here? We did tell the tax office of this when we filled our 2009 one in.J Link to comment Share on other sites More sharing options...
Sunday Driver Posted September 24, 2009 Share Posted September 24, 2009 [quote user="Barbel Bob"]Hi, We did not fill one in during 2008 as we were misinformed and not earning anything. [/quote][:-))]No seriously.... A tax return, childrens school attendance, CPAM health insurance attestation - all sufficient proof that your house is your regular home. Link to comment Share on other sites More sharing options...
Barbel Bob Posted December 3, 2009 Author Share Posted December 3, 2009 Hi,I have now been informed by friends so need to check on what they have said is true. They say if we return to England in April as planned and have not sold our house then once we have lived in the UK for more than 26weeks we will no longer be residents in France so therefore will liable for CGT?Is this correct?Thanks Link to comment Share on other sites More sharing options...
P-D de Rouffignac Posted December 3, 2009 Share Posted December 3, 2009 I have just checked the relevant law on this and it defines your 'résidence principale' (when it comes to selling) as your habitual residence at the time of sale, and there is no fixed qualifying length of residence, particularly if you are obliged to sell and move 'for urgent family reasons or change of principal residence'. (art. 150 C-II CGI). A later note (DGI 8 M 1522, 14 - 1 Dec. 1995) refers to a period after vacating before the actual sales occurs of up to one year, which might be negotiated (ie. extended) in today's slow property market - according to anecdotal evidence only. As all these matters are open to interpretation and negotiation, and it is the Notaire handling the sale who is primarily responsible for applying the law, my advice is to conslt the Notaire who will eventually handle the sale as soon as possible, so that everything is clear and agreed beforehand, for your own peace of mind. He/she can also advise on what documents you need to establish your position in case of any doubt. Hope this helps and that your sale and move go smoothly for you - P-D de R. Link to comment Share on other sites More sharing options...
Sunday Driver Posted December 3, 2009 Share Posted December 3, 2009 EU citizens formerly resident in France are exempt from CGT on their French property provided they can demonstrate that they were fiscally resident here for a continuous period of two years at any time in the past.You currently have only your 2009 tax avis covering your income during 2008. When you submit your 2010 tax declaration, that will be for your 2009 income, so by the time your house is sold, you will have met the two years fiscal residence qualification. Link to comment Share on other sites More sharing options...
Barbel Bob Posted December 3, 2009 Author Share Posted December 3, 2009 Thanks to both who replied.Sunday Driver that is exactly what we had thought and since we are not leaving till April thought we would be ok, then we were told that if we are out of the country for more than 26wks then we would then be liable.Fingers crossed we sell beforehand but i will make an appointment with the Notaire just to verify.Thanks again! Link to comment Share on other sites More sharing options...
dr orloff Posted December 3, 2009 Share Posted December 3, 2009 I believe I know where this came from - there used to be a two year rule, but it changed some years ago now to the 'habitual residence' wording. Link to comment Share on other sites More sharing options...
Sunday Driver Posted December 3, 2009 Share Posted December 3, 2009 The 'two year rule' you mention was merely a guideline used by notaires to determine the status of one's principal residence for the purpose of CGT. It tended to disadvantage anyone in genuine permanant residence who was caught in the timing trap whereby they may have had to be resident in the property for longer than two years in order to acquire two annual tax demands at that address, so the latest 'habitual residence' criteria now incorporated in the tax regulations is clearly a fairer basis.The two continuous years fiscal residence tax rule which applies to EU citizens who are now living abroad is a different matter. Link to comment Share on other sites More sharing options...
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