who gets the tax ?

[Gyn_Paul]

Everywhere I turn I seem to find conflicting advice on this subject:

If I am a UK resident with a maison secondaire here in France, when I sell it I expect to make a smallish capital gain. As a UK taxpayer, I would expect to declare it on my UK tax return, yet I have seen replies from people on other forums and in various publications implying that there is a French tax liability as well. Is this in addition to the UK CG? If so, what happened to the 'no dual taxation' principle?

paul

 

[BJSLIV]

If there is a taxable gain, the notaire will automatically deduct any tax payable from the proceeds. You then declare the profit on your UK return. If there is a UK liability then the amount you have already paid in France is deducted reducing the amount payable.

This calculator works out the French liability for a French resident at 27%.

http://www.pap.fr/calculs/plus-values/calcul-plus-value.asp?an_vte=2005

So you will need to reduce to the UK residents rate of 16% ( No social charges to pay!)

If you have a gain of say 10000 euros you could have zero liability in the UK because of the £8500 exemption, but still be left with a French charge.