frenchaddict Posted May 12, 2006 Share Posted May 12, 2006 Hi, I'm afraid we haven't posted much on the site but we have been reading a lot![:D]The thing is, we'd just like some thoughts on this please...My husband is a builder here in the uk, we've had a house in Picardie for over 10 yrs which he renovated himself. We've now bought a piece of land in the same village, which my husband is hoping to build on very soon (he's drew the plans,had them passed and is just waiting for the next available free time he has to go over and get the ball rolling) The Mairie and all the other French people we know are just so pleased for us, they know if things go well for us, we are hoping to move over there this year with four of our children. The thing is, we don't know whether he still has to register in France in the same way he would if he was building for someone else. If anyone can shed any light on this to let us know what he should do.....register as a macon (that's his trade) or not? We aren't planning on selling the new house for a while(if at all). Obviously when we are living there, he will be registered but for this build, we are unsure. Our French friends and the Mairie seem to think my husband doesn't need to.Regards Sheila & Pete Link to comment Share on other sites More sharing options...
Nick Trollope Posted May 13, 2006 Share Posted May 13, 2006 You can build (and sell) one house (each) per year without registering as anything - subject to planning, just do it!However, you will be stung for CGT when (if you want to) you sell, as you will have few allowable deductions this could amount to 16% of the selling price (if you are resident in the UK, 27% otherwise).Registering as a "Marchand de Biens" (seller of property) will save you tax (but not social charges) and CGT, but you would need to be resident in France. It has significant VAT implications (such as adding VAT to the selling price of the house!), but you can reclaim VAT on materials/labour...I looked at this in depth about 12M ago and concluded that the MdeB route was wrong (for us). Ask an accountant, as this area is full of pitfalls! Link to comment Share on other sites More sharing options...
Val_2 Posted May 13, 2006 Share Posted May 13, 2006 What about the ten year guarantee in case theyhave to sell up before that time, to protect another buyer against any faults which sometimes take years to appear? Link to comment Share on other sites More sharing options...
frenchaddict Posted May 13, 2006 Author Share Posted May 13, 2006 Thanks for that advice Nick, it's certainly something to consider. We thought we would be hammered for CGT so we have to wheigh up whether it's worth just registering as a small business right from the start or wait to see if we want to keep the house long term. With regards to your concern Val, that was also one of ours too. We just don't know what guidelines the French have for guarantees with regards to house building/selling. Although I must admit(even though I'm biased), my husband is a brilliant builder, his work is second to none and he certainly would honour any unforseen faults which do sometimes arise with a new build. Any other advice/comments will certainly be appreciated. Thanks.Sheila & Pete Link to comment Share on other sites More sharing options...
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