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Capital gains tax


Whyayeman

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We Moved out to France a year ago, but held on to our house in England just incase things didn't work out for our 2 young children. Now we can't imagine moving back and we would like to cut loose and liquify our uk asset. Anyone have any info as to where we stand in light of the UK gov introducing capital gains tax on the sale of 2nd homes earlier this year?

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A quick look at the Inland Revenue pages on capital gains shows that the last 36 months of ownership are allowable towards total exoneration from tax.

Sales of a UK property to French tax residents are currently not taxable in France subject to becoming a French tax resident in the UK tax year prior to the sale of the property. This is about to change though and any sale should be conducted quickly.

From the little information provided it appears that you qualify as a French Tax resident for 2004 and arguably for 2003 also, I would suggest that you consult a professional advisor to ensure that you have the correct information as the information I have given has only been gleaned from the internet and is only my interpretation. 

Other Forum members may have personal experience to relate.

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