Income from sale of uk property

[Julia01]

I understand from reading various threads that i will be taxed on any income recieved from the uk even if it is child maintenance. Does anyone know if equity made on the sale of a uk property will also be taxed?  I wish to use half the money to buy a french property and the other half to renovate.

[Viv]

You cannot usually claim child benefit from the UK if you live in France.

 

[Benjamin]

I am assuming you are asking this question from the point of view of being tax resident in France.

You will not be taxed on the equity/capital from the sale of your UK house unless your worldwide assets exceed 750.000€.

Benjamin

[Unknown]

[quote user="Diva Star"]

You cannot usually claim child benefit from the UK if you live in France.

 

[/quote]

Diva the original poster said child maintenance not child benefit.

[Viv]

I read it twice to see if I could help with her other queries !

Has there been some editing going one?[8-)]

Or do I just need to get my stronger lenses?[:-))]

I just thought I'd clear that up about child benefit as I know of some one who 'forgot' to mention it to Newcastle and got into a spot of bother .

[Julia01]

Not sure why people keep mentioning child benefit, when i said "child maintenance" i meant from my husband!!! But thanks for the info on child benefit, i will make sure i cancel it.  It has also put my mind at rest regarding the equity from my house . so thanks everyone. julia

[Julia01]

Gosh just read my reply and it sounded really rude, wasnt meant to be, sorry!!

[Debra]

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[Debra]

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[Benjamin]

Debra

I read part of Julia01's original question as asking if she would have to pay any tax on the equity (capital) from the sale of a (UK?) property.

Maybe she could qualify this for us as you have introduced capital gains tax which, if not relevant to her at the moment, could cause confusion.

Where are you Julia01?

Benjamin

[Will]

The answer to that question is that, disregarding the capital gains issues already discussed, the capital itself would not be liable to tax, unless your total assets bring you into the French wealth tax bracket - about 750,000€ I believe. However, the interest received would be taxable.

This is why a lot of British people in France do rather well as a result - they are living mainly off capital, giving them the trappings of luxury living,but because their actual income is low, they are entitled to various reliefs and benefits in France. Before anybody gets upset (because there have been misunderstandings before), I am not knocking people using the system in this way - best of luck to them - merely pointing out how it is (or at least how it is until the capital runs right down). On the other hand, there are French families with far less wealth but slightly higher incomes who pay heavily into the system, and regard what they see as the 'idle English' in a not-too-favourable light.

[Julia01]

Thanks for that info everyone, not sure if im confused or not!!! Basically I'll only have 90000euros so i wont be taxed. Im not paying social security so i can claim child benefit in uk but must let them know and can possibly recieve top up from French CB.  Is that right, i think so?

[Debra]

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[Julia01]

Hi Debra, I just telephoned the child tax credit in Uk and they have advised that if i move abroad i will no longer be entitled to tax credits in the UK.

[Debra]

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[Viv]

There are very few instances when you can continue to get Child benefit from the UK.The vast majority of people who move to France from the UK will not be able to carry on claiming. It is NOT the norm.

Even if you are not paying social security contributions in France, you can claim French equiv CB in France.

 

[Julia01]

The problem is that everyone is an individual case.  I have read what everyone has said and am going to call the child benefit office tomorrow, i have also asked a french friend to speak to french office for me to get some details. I will post the outcome just incase anybody is going through same thing and might find it interesting.

[Viv]

Regardless of the advice on here, I believe everyone is legally obliged to contact Newcastle if they / the child is leaving the UK.

So you are doing the sensible / right thing. If you are no longer entitled to UK family allowance, Newcastle should send you a letter to take to the CAF office confirming that you no longer get UK CB . You will struggle to get the money in France without this letter. 

[Debra]

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[Julia01]

This is quite funny how this coversation has turned out, considering the title of this thread.......Its certainly given me other things to think about...thanks everyone.

[Julia01]

Ok ive just phoned them........ Unless i am recieving some kind of income support from the UK which i will not be doing or if i work for a travel company for example so am recieving  uk sallery i cannot claim child benefit.  I could ask my ex husband to claim the child benefit as he will still be in england, and he can send it to me, but for me that would not work! So there you go.  For anyone reading this who needs to know, you have to ask for a green form fill it it and the day you leave for France the child benefit is stopped and you take a letter to office in France to claim there, I will be entitled to it there.

[Viv]

Glad you have got it sorted Julia.

I have found this which may also help others

http://www.hmrc.gov.uk/childbenefit/ch5_notes.pdf

Debra

I wasn't suggesting anything, but as I know of someone who got themselves into a spot of bother with Newcastle because of what they thought , it is better ( and legal)  to get these things sorted before anyone leaves the UK.[:)]