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TVA and CGT on Sale of House and Gites HELP


Fauvette

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Hi, have read the posts but need some guidance, will obviously contact our notaire BUT, We have a house and barn converted into Gites we are selling. Do we have to pay TVA back on the barn renovation which has only been done for 2years? Do we pay Capital gains on the whole property, it is our sole residence.

Basics bought all for say 168,000 euros, spent 240,000 euros on renovation, plus pool 20,000 euros so on sale what are we liable for.

 

Thanks

Peter

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The Notaire will apportion purchase costs, renovation costs  and sale price between your house and the gites.

VAT and CGT will be charged on the Gites, VAT will only be charged on the house if it was a real wreck which required very extensive rebuilding.

At its simplest the the VAT liability will be 19.6/119.6ths (16.4%)  of the selling price less the VAT paid out for which you can produce receipts.

 

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  • 2 months later...

Small hope for you on the CGT front.  I read in a magazine somewhere that if you are registered disabled with a proper french Carte d'Invalidité, you are exempted from CGT.  I think.  You could look this one up.  I think I am right, as in, I think I understood the article correctly.  So, you could get yourself on that?  Maybe?

Fil

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