Capital Gains Tax on French Property Sale

[Zac]

Can anybody out there help ? I am getting so many conflicting stories which is making for much confusion.

I am a widow who moved to france 18 months ago and bought my present home just over a year ago. It is my intention to sell next year and move down to the med coast. I am registered with the local Marie and this is my main residence, however i am not registered for tax purposes as yet - my source of income being my widows pensions in uk ( being nearly old age pension ) which is my only income. Could anyone please tell me if i will have to pay capital gains tax on the sale of my home or what i need to do to become exempt ?[8-)]

[BJSLIV]

The most useful thing you could do straight away is to make an (overdue!) tax declaration in France. That would get you into the system so that by the time you sell there will then be no question that the house is your main residence.

For the future you will need to take steps to ensure that where possible pensions and incomes  received in the UK are paid gross without tax deduction, and also arrange to recover whatever refunds you may be due form the UK.

 

 

 

 

[Nick Trollope]

I doubt if the OP would have a problem (ie, be required to pay CGT!), regardless of her tax status, if she is genuinely selling her primary residence (I know of several deals where this has been the case).

You are quite right in suggesting that she gets her tax affairs up-to-date, but being a "tax payer" doesn't automatically equate to your "tax address" house being your primary residence.

 

[Zac]

Thanks for your advise BJSLIV. I have just read a post from MLT1976 regarding the 5 year rule on selling property. What is this ? In your oppinion is this rule still in excistence, i have never heard of it until now so would be interested if anybody else has any comments on this matter..... Regards Zac [8-)]