Mikebond Posted March 6, 2005 Share Posted March 6, 2005 question re capital gainsIf we rent our house out in England and buy a house in France [looking in Normandy]does the house in France become our main residence for capital gains purposes if we then sold house and moved to different house what taxes would you payThanks Bond007 Link to comment Share on other sites More sharing options...
Val_2 Posted March 7, 2005 Share Posted March 7, 2005 Main residence is defined by where you spend the most time in 12 months. I believe if you spend MORE than 180 days in one place then you are deemed as a principal resident there. If you move to France you must inform the UK IR and they will define your status when you declare the rental on the following year's returns. You should also declare yourselves to the french taxman too.There are no capital gains on a main residence as far as I know,but a second home will attract something I'm sure especially if you have no mortgage on it. Link to comment Share on other sites More sharing options...
Will Posted March 7, 2005 Share Posted March 7, 2005 At least in this part of Normandy, in order for your house to be considered your principal residence for capital gains tax you need to be tax resident/domiciled in France. This is proved by your having made a tax return in France - even if no tax is actually payable.As far as amount payable is concerned, when selling you would pay 16% of the profit as a UK resident. French residents selling a second home have an extra social charge on top of that making it effectively about 26%, those from outside the EU (or from the newer EU member states) pay 33%. This is deducted by the notaire from the sales proceeds. There are things that can be offset against the profit, like legal/agency fees and certain improvement work for which you have a detailed TVA invoice from a French registered tradesman. Link to comment Share on other sites More sharing options...
Mikebond Posted March 8, 2005 Author Share Posted March 8, 2005 to Will the ConquerThanks for information on capital gains in FranceMike Bond Link to comment Share on other sites More sharing options...
Mikebond Posted March 8, 2005 Author Share Posted March 8, 2005 [quote]Main residence is defined by where you spend the most time in 12 months. I believe if you spend MORE than 180 days in one place then you are deemed as a principal resident there. If you move to France...[/quote]To Val 2Thanks for information on capital gainsYours Mike Bond Link to comment Share on other sites More sharing options...
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