Circumstances in which you can be exempt from plus value tax on the sale of a property

[Debra]

I haven't seen this mentioned on here but if it has been, please feel free to delete this post!

Here is an article which discussed the various circumstances in which you can be exempt from paying plus value tax on the sale of a property.  It includes:

1 The sale of a principal residence.

2 The first sale of a second home.

3 The sale of the former residence of pensioners or disabled who have moved into a care home.

4 The sale of a property priced up to €15000.

Number especially 2 is worth a read since it says that if you don't presently own a principal residence and haven't done so for four years, you can sell your second home free of plus value tax if you put all of the money towards buying a principal residence within two years of the sale.  This article states that this exemption includes the case of buying your principal residence elsewhere in Europe.

[NormanH]

Are there many people who own a second home without also owning their main one? 

I suppose people who have a house provided by their job would be the main cases..

It doesn't mention the other cases where it is possible to be exonerated, such as a retired person on a low income.

http://vosdroits.service-public.fr/F10864.xhtml#N1028B

[Chancer]

I cant get my head around how you can have a residence secondaire but not a residence principale [8-)]

Could it be people that have always rented but then bought a property and rented it out? Still cant work out if its their first or second property!!!

In any case in the above scenario would people really be liable for plus value tax?

I must have misunderstood as I cant see many people renting out the home they own only to rent another, work moves etc perhaps, what about the person who owns their own home and then shacks up with someone else in their property and rents out their place, would they then have been liable to plus value tax?

Methinks I am missing something simple and obvious to all but I.

[idun]

 

My son rents, but if he ever ever has any money and buys a little appt somewhere else for holidays, then his residence prinicipal will be where he lives and he'd own his residence secondaire....... isn't that what this means.

 

I know of people who were transfered to Paris and kept their village house which they would come back to for every holiday. They rented in Paris.

 

 

[Chancer]

Its appalling to think that in that scenario he would have to pay plus value, what about a place like mine where I have spent more than double the purchase price doing it up but having done all the work myself cannot even offset the materials?

Many people would end up paying tax on a paper "gain" when in fact they have made a loss, on the sale of their only property.

[idun]

[8-)] Yes, I am very confused, I thought that this post was about exemptions?

 

[Chancer]

Sorry, I should have said "would have had to pay" meaning (presumably) as under the previous legislation.

[Debra]

[quote user="NormanH"]Are there many people who own a second home without also owning their main one? 

I suppose people who have a house provided by their job would be the main cases..

It doesn't mention the other cases where it is possible to be exonerated, such as a retired person on a low income.

http://vosdroits.service-public.fr/F10864.xhtml#N1028B

[/quote]I wonder why they didn't mention that one Norman - and what the conditions are?

I think lots of people in France end up with second homes via inheritance which they may need to sell to afford a main home near to where they work, perhaps?  That seems to be where it's mainly aimed at.  However, it is relevant to people who might have two homes in France and sell up their principal residence here and move at that point but rent until the second home is sold because they need the proceeds of both to buy where they want to be.  Whether you're moving to Paris or the UK, that can happen and it can take four years to sell at the moment!! 

I found the link when someone was asking about it elsewhere because they owned a holiday home in France, never lived in as a main home, but rented in the UK and wanted to buy a principal home in the UK with the proceeds of selling their French holiday home - so it does happen!

[NormanH]

Sorry I thought the conditions were explained more clearly on the link I gave than they are in fact.

Bien dont le vendeur est titulaire d'une pension de vieillesse (in fact any old age pension whether from France or elsewhere)

 ou de

réversion ou d'une carte d'invalidité (de 2ème ou 3ème catégorie) sous

certaines conditions (de ressources notamment) the resources are in fact

Les cessions réalisées par les titulaires d'une pension vieillesse dont

le revenu fiscal de référence de l'avant-dernière année ne dépasse pas

le plafond d'exonération des taxes d'habitation et foncière,

et par les titulaires d'une carte d'invalidité de deuxième ou troisième

catégorie, à condition que ces deux catégories de contribuable ne

soient pas redevables de l'ISF au titre de l'avant-dernière année

précédant la cession.

• 10 024 euros pour la première part + 2 676 euros pour chaque demi-part supplémentaire

http://droit-finances.commentcamarche.net/contents/impot-plus-values/les-plus-values-immobilieres-exonerees