Laurier Posted September 13, 2007 Share Posted September 13, 2007 Sorry to raise this, especially after having found very detailed info in the archives (thanks) but I am still trying to get my head round the CGT. I have also been into the HM site but am still confused.My house in the UK was purchased in 1971 but am not in a position to sell the house at this stage as 2 elderly relatives live with me.If I buy a small place in France to retire to now (and make it my principal residence with tax residence), I assume that when I sell the UK place I will pay a huge amount of CGT to both (?) UK and France. Does anyone know what % this might be? Pickles mentioned that the calculation was complicated if the house was purchased before 1998. Obviously the capital appreciation from 1971 to 2007 is high!I presume the alternative is to buy a place in France but keep UK as my principal and tax residence, then would I pay no CGT (?) when I sell the UK place? This really means I can't 'retire' to France yet but it might be the only answer. Any help to straighten my head would be appreciated.Lauri Link to comment Share on other sites More sharing options...
Pickles Posted September 13, 2007 Share Posted September 13, 2007 [quote user="Laurier"]I have also been into the HM site but am still confused.[/quote]I think that you need to look at the on-line capital gains tax manual, accessible from the HMRC website, which provides specific guidance.[quote user="Laurier"]My house in the UK was purchased in 1971 but am not in a position to sell the house at this stage as 2 elderly relatives live with me.[/quote]I think that from the French tax point of view, the date of purchase would of itself mean that there would be no French CGT liability, as you will have owned it for more than 15 years.It is possible that there would be no UK liability either, even if you were no longer resident, so long as your dependent relatives took up residence before 6th April 1988 and they live there rent-free. See the extract from the CGT manual below:CG64205 - Private residence relief: dependentrelativesTCGA92/S226Relief may also be available on the disposal of a residencewhich has been provided by an individual to their dependentrelative. The residence must be provided rent-free and without anyother consideration and must have been occupied by that dependentrelative before 6 April 1988. For detailed instructions seeCG65550+. Link to comment Share on other sites More sharing options...
Laurier Posted September 14, 2007 Author Share Posted September 14, 2007 Thanks Pickles. I had no idea of the 'dependant' relief and this obviously gives another angle to the equation which I need to investigate in more depth.I will look at the on-line manual again and see if I can sort out the answers before I come up with more questions ...Lau Link to comment Share on other sites More sharing options...
Recommended Posts
Please sign in to comment
You will be able to leave a comment after signing in
Sign In Now