Selling a French property as a UK resident

[Pickles]

Since I have just gone through this, I thought it might be a good idea to post about the peculiarities of selling French property as a non-French resident, EU- (UK-) resident owner.

As a non-resident, selling a property with a capital gain where the property value exceeded €150K, we were required to engage the services of a fiscal representative - in this case SARF. This adds cost to the transaction but until France starts taking notice of the European Court you are stuck with it.. One of the things that SARF requires is some form of certification of residence from the tax authorities of your country of residence in order to prove that you should be paying the EU rates of capital gains tax rather than the non-EU rates.

In fact, what they are asking for is what HMRC calls a "letter of confirmation" and not a "certificate of residence". The format of this letter is shown on the following web page:

http://www.hmrc.gov.uk/manuals/intmanual/INTM162140.htm

The easiest way to apply for this letter appears to be to use the online application form for the certificate of residence, filling in the boxes in such a way that it is clear that what is being requested is a letter of confirmation rather than a certificate of residence. Thus the financial details required are much much more simple. In our case, the letter of confirmation was received within a couple of days of the application.

The online application form is at:

https://online.hmrc.gov.uk/shortforms/form/PT_CertOfRes?dept-name=&sub-dept-name=&location=26&origin=http://www.hmrc.gov

Strangely, despite both forms having been pretty much identically filled in, HMRC decided in its wisdom to give me a Letter of Confirmation but a Certificate of Residence for my other half.

[PaulT]

Pickles 'As a non-resident, selling a property with a capital gain where the property value exceeded €150K, we were required to engage the services of a fiscal representative - in this case SARF. This adds cost to the transaction but until France starts taking notice of the European Court you are stuck with it'

Out of interest what does the EC say should happen?

PS well done for getting a sale

[Pickles]

[quote user="PaulT"]Pickles 'As a non-resident, selling a property with a capital gain where the property value exceeded €150K, we were required to engage the services of a fiscal representative - in this case SARF. This adds cost to the transaction but until France starts taking notice of the European Court you are stuck with it'

Out of interest what does the EC say should happen?

PS well done for getting a sale[/quote]

Under EU rules we should be treated in the same way as French residents except in regard to social charges, which should only be levied on French residents since EU-resident non-French residents are already covered by the social security systems of their home states. French residents do not have to employ a fiscal representative. The European Court has ruled on social charges with regards to income, is about to rule on social charges with regards to capital gains (for which an initial opinion has been lodged) and I understand a complaint wrt use of fiscal representatives is ongoing but an initial opinion has been given. All have gone against the French thus far.

[Pickles]

Incidentally, any non-resident who sold a property in 2012 and had a capital gain on which they were charged social charges now has until 31st December to file a claim with the tax office for repayment. The same goes for claims for repayment of social charges paid on eg rental income which arose in 2012, and was charged in 2013. For social charges on rental income which arose in 2013 and was paid in 2014 and capital gains arising in 2014, non-residents have until 31st December 2015 to lodge their claims for repayment. "Connexion" suggests a suitable form of words for the claim.