CGT advice on second home France and UK
Discussion
Looking to fund our French renovation project and one option is to sell our old family home in the UK. I'm aware that there will be some CGT implications in both the UK and France but I can set one against the other. Before I take the plunge to sell (it's currently rented out) I'm trying to work out just how painful it might be so I'm looking for a tax adviser who maybe has experience on both sides of the channel. Anyone able to recommend someone?
dingg said:
Now that the uk is out if the eu is cgt able to be offset if you sell the french property then reinvest in uk?
If that's your plan, I think that doors been shut but not 100% sure?
Pretty sure that's not the case now and in any case if I sell it will be to fund a project in France rather than the UK but these are exactly the sorts of questions I need some expert advice on.If that's your plan, I think that doors been shut but not 100% sure?
You say the French property is rented out. How are you addressing the French income tax situation around that? And are you/how are you then reporting that income in UK? Are you domiciled in France and paying tax as a French taxpayer or are you a foreigner who simply owns an asset in France which falls within their tax regime?
Without a better understanding it's difficult to comment.
Without a better understanding it's difficult to comment.
rockin said:
You say the French property is rented out. How are you addressing the French income tax situation around that? And are you/how are you then reporting that income in UK? Are you domiciled in France and paying tax as a French taxpayer or are you a foreigner who simply owns an asset in France which falls within their tax regime?
Without a better understanding it's difficult to comment.
No the old family property in the UK is rented out and income declared to everyone. I'm not really looking for advice here though just of someone can recommend an expert as I fully appreciate it isn't straightforward. The trick is trying to find someone who is expert (or at least knowledgeable) in both as it appears I can offset one against the other. It's specifically Capital Gains Tax that I need to know about, income tax is sortedWithout a better understanding it's difficult to comment.
I use a guy called Vincent Grey who does consultancy / tax returns for Anglo/French residents.
vgconsultants@wanadoo.fr
I am not an expert, but i think that you should expect to pay CGT in the UK and then declare the net capital gain in your French Tax return where it will be treated as income, in that tax year.
It will be treated in much the same way as your UK rental income is currently treated in France
vgconsultants@wanadoo.fr
I am not an expert, but i think that you should expect to pay CGT in the UK and then declare the net capital gain in your French Tax return where it will be treated as income, in that tax year.
It will be treated in much the same way as your UK rental income is currently treated in France
If that guy isn’t any use (sounds like he could/should be) I have used a Private Client lawyer for some advice on CGT. Not cheap because he’s at a relatively large London law firm but I am fairly sure he’d know....he definitely knows UK CGT inside out and has clients who would have assets in multiple jurisdictions. I guess a lot depends on where you are resident for tax purposes ?
I have a .pdf of the Anglo-French double taxation treaty 2010, Article 14 covers CGT. Provided to me by Vincent Grey as my UK accountant had made wrong assumptions.
If the OP wants me to send a PM me, I am happy to forward it, but it does not make easy reading.
I think what i wrote earlier is correct. You pay CGT in UK and net will be taxed as annual income in that year, in France.
If the OP wants me to send a PM me, I am happy to forward it, but it does not make easy reading.
I think what i wrote earlier is correct. You pay CGT in UK and net will be taxed as annual income in that year, in France.
rdjohn said:
I have a .pdf of the Anglo-French double taxation treaty 2010, Article 14 covers CGT. Provided to me by Vincent Grey as my UK accountant had made wrong assumptions.
If the OP wants me to send a PM me, I am happy to forward it, but it does not make easy reading.
I think what i wrote earlier is correct. You pay CGT in UK and net will be taxed as annual income in that year, in France.
Thanks. I've seen the treaty but as you say it doesn't make easy reading. I'll send a mail to the person you suggested thanks for the adviceIf the OP wants me to send a PM me, I am happy to forward it, but it does not make easy reading.
I think what i wrote earlier is correct. You pay CGT in UK and net will be taxed as annual income in that year, in France.
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