French CGT

[under the cosh!]

I jointly own an apartment which we have owned for 6 years. My partner now wants to sell their share, which i would ideally like to purchase. What are the French CGT implications of this ownership transfer which would amount to around 70,000 euro?

[Richard51]

I guess the obvious first question for CGT (given the period and duration of ownership) is, is there actually a gain to worry about?

Mrs R51

[under the cosh!]

I am told by a local estate agent that the overall gain on the property since initial purchase off plan at an agreed price in 2004 is about 50,000 euro.

[parsnips]

Hi,

    Are either or both of you french resident?  This will make a great difference.

[under the cosh!]

No, we are both UK residents

[Rabbie]

Then you need to look at possible UK CGT as well

[parsnips]

Hi,

     Your partner (to whom I assume you are not married) would be liable to french CGT of 19% on the gain on their half after a fixed 1000€ allowance and, in the absence of any invoiced maintenance bills, a 15% allowance for works done, after 5 years of ownership there is a reduction of the taxable amount by 10% . As non-residents social charges of 12.3% are not due.  As you are both UK resident you could reduce both the CGT and notaires fees by setting the lowest feasible price (without going ridiculously low) and settling up the difference in cash in the UK.

      For UK CGT implications see the HMRC site.

[under the cosh!]

Many thanks for response, gives me some idea as to how to proceed.