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Capital Gains Tax


Ciel Bleu

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In the UK I understand that if you put your house on the market and then buy another one before it has sold and move into it, you're allowed an overlap period of one year (I think I'm right ) - during which time you own 2 properties - before incurring CGT when selling  house no.1.

Do rules similar to this happen in France ie as long as you're trying to sell one house are you exempt from CGT if it sells within the year?

We don't own anything yet in France, and only have one house in the UK - but am just trying to understand how things work because we know someone in this very situation in France who has been desperately attempting to sell one of their houses for almost a year.

Thanks

Caroline

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  • 2 weeks later...
[quote user="Ciel Bleu"]

"Under French tax office guidelines, the same one year period is accorded for the sale of the principal residence where another is purchased prior to finding a buyer"

Caroline

[/quote]

I think it might be a little more complicated than that.

When we bought our house, the previous owner had moved out some time before. However, the Notaire said that he would not be liable to CGT for two reasons.  Firstly because it had been his primary residence for more than 2 years, and secondly because he had owned it for more than 16 years in total.

This was all said at the signing of the Acte.

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Brilec, I agree with you. The question I put to Headdon Consulting contained only a limited amount of information, and I think they probably answered me as well as they could,  given what I had told them - does that make sense?!

I've been reading their forum and lots of people have asked about CGT in different situations - yes, it is complicated and depends very much on individual circumstances, and needs a legally-trained brain to sort it all out !!!

The conclusion I have drawn is that due to the difficulty people are now experiencing in selling French property, it would make life a whole lot easier if one is able to complete the sale of Primary residence no.1 before buying Primary residence no.2.

 Et voila! = no CGT incurred

 

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