Selling an incomplete property

[Londoner]

House half completed - if I sell it now will I be liable for CGT and/or TVA if no profit is made?

If sold on completion, what would the liabilities be re CGT and/or TVA, assuming a profit is made? 

Co-owners are both tax-paying pensioners in the UK.

Londoner

[Pickles]

[quote user="Londoner"]

House half completed - if I sell it now will I be liable for CGT and/or TVA if no profit is made?

[/quote]

You only pay CGT on the gain - ie (what you sell it for) minus (what you paid for it + costs for which you have bills)

Not sure where TVA comes in, unless you have been paying the reduced rate TVA on the building work, in which case TVA may become payable.

Bear in mind that French CGT is 16% for non-French residents and no social charges to pay ... but you then have to pay the difference between 16% and 40% of the gain to HMRC (minus your annual CGT allowance).

Regards

Pickles

[BJSLIV]

VAT at 19.6% will be deducted from any profit made on a house that is not complete. The same deduction will be made if the house is sold within the first five years after completion. You would also be liable for Capital Gains Tax. If, for example, you sold for 80,000 euros a property that had cost you a total of 50,000 Euros you would pay about 10000 Euros out of your gain of 30,000. You would include in the costs any build, land, insurance, and taxes paid. You may also have further CGT to pay in the UK, depending on your tax situation.