Capital Gains Tax

[Ian]

How long and how recently does one have to live (and prove one has lived) in a house as a principal private residence for it to be free of CGT on its sale?

[Pickles]

The CGT position of a person who

is French resident is that they have no French CGT to pay on the

capital gain realised

on the sale of their principal (habitual) residence. The main

requirement is that it is their main (habitual) residence on

the date of sale, as evidenced by tax returns or other proofs of residence.

If you are resident in another EU member state and

you have previously been fiscally resident in France for two consecutive

years, then from 2006 the sale of up to two French properties is free of French CGT (provided

that the second sale is of the only residence in France of the non-resident AND

that the second sale takes place more than 5 years after the first sale that

was exempted from CGT).

Why's everyone suddenly interested in CGT? Are you all thinking of selling up?

Regards

Pickles

[Ian]

Thanks Pickles.

In my case I will need to spend some time in rented property between sale and purchase of my "principal" home.  I thought I may as well stay in one of my own rental properties (if I have a vacant one) with the potential added benefit of then being able to sell it CGT free in the future.  Your answer suggests, if I have understaood you correctly,  I have to living in it on the day I sell it for that to work (even if I have only been living there for a short time). So my plan falls through as I have no plans to sell it,,,just thought it would handy knowledge to have, just in case ... I'm happy to pay my fair share of tax but have no wish to pay more.

I thought I'd ask the question in case the answer was something like "Live in it for 6 months and provided you sell it within the next 5 years you'll pay no CGT".  It's worth knowing the lie of the land before making any decisions.

Thanks again