Jump to content
Complete France Forum

Capital Gains


Postie

Recommended Posts

Hi

We are planning on buying a second property with some land before prices rise too much more. This property will be a barn for renovation which we will turn into a home. We currently have a house (very little land) in the Vendee and will sell as soon as the renovations are finished. Will we be liable for CGT on the sale of the property in the Vendee? My logic is that the second property isn't a house, just a barn!

Thanx

Postie

 

Link to comment
Share on other sites

Judging by your location (Lincs / Vendee)  I assume that you live in the UK, and the house in the Vendee is a second home. If that is the case you will be liable for tax on any gains at a rate 16% , with a 10% reduction for each year, above 5,  that you have owned it . If there is a significant gain you may have some further tax to pay in the UK, at your marginal rate of tax.

My logic is that the second property isn't a house, just a barn!

Which depending on how optimistic you are means there will be an even bigger gain if you sell that one whilst still living in the UK.

If you are pessimistic, then it will just be a money pit and you will never have to worry about CGT.

Link to comment
Share on other sites

Thanx for replying Will. We are currently living in the UK but hope to move to the Vendee in the next few months. We will then be French tax residents & subject to CGT in France. I am aware of how the CGT works but wondered if we bought a barn or, for that matter, a building plot, would we have to pay CGT on the sale of the Vendee house?

Thanx again

Postie

Link to comment
Share on other sites

It basically depends which address you use when making your French tax return. That will be your principal residence, and thus free from capital gains tax. If it looks like being a problem speak to the notaire who would handle the sale, he is the person you initially have to convince that the house is your principal residence. Beware too that if selling a conversion or new building within five years of completion, you will be liable for TVA.
Link to comment
Share on other sites

Thanx again to you both for your input. We will have owned our Vendee house for at least 5 years before we get around to selling. The house was a habitable residence when we bought but we have done some serious renovations to make it more livable.  I will bear your comments in mind when making our next investment.

Postie

Link to comment
Share on other sites

I have a similar question which is if you have one maison secondaire renovate it sell for a profit (here's hoping) and buy another straight away do you still have to pay capital gains in france (UK tax payer) which I am assuming is 16% as you only ever have one house and and are not taking the equity from the property, here's hoping you don't but I think I'll know the answer![;-)]

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...