I am aware of the changes in CGT to 30 years but I have a question one of you may be able to answer.
I currently have 2 small apartments in the Languedoc (Barcares) - I hope to retire in 6 years but keep my Irish residency and split my time between Ireland and France.
I plan to sell the two apartments and buy a larger property in the Minervois when I retire. My question is
"will I have to pay CGT even if I am spending all of the money on another property?"
I will have owned both apartments for about 15 years by then and currently have about €70K surplus on purchase and selling prices though I have not took anything off for allowances in that total.
yes the plan is to go back to the change at first desired...30 years for both. The 25% also ends in August. By the way, the new edition of the living in france book of ours is ready now, so you should be able to get a copy soon :) The calculations are in there too, and have not changed since we went through this at our seminar. Hope all well with you
No I am merely stating the fact that it seems to be fairly widespread in France.
Second homes haven't (traditionally) changed hands that often in France and maybe the French simply feel it is an unfair ruling and thus deserves to be disobeyed.
Who knows?
Who cares for that matter?
I certainly don't as I have far better things to do on a bank holiday! It's bad enough having to keep a weather eye on SFN 24 /7 without debating semantics!
Mary, are you saying that taper relief is ending in August this year? Or does French CGT revert back to 30 years after August this year? I thought it was just the 25% discount off CGT that ended in August?
You can't win 'em all, but maybe you could reduce your bill by doing what Westminster MPs call "flipping", which means you change your official residential address to the place you are about to sell, and thus avoid having to pay the tax on the increased value.
You have to do this well in advance, of course, probably at least a year, so that you can return an income tax declaration from the chosen address in order to prove it's your home, and it does leave you with a potential CGT liability on any other property you have - at least until you "flip" again.
Carry On Flipping seems to be the answer to your question
Thanks for your replies - If the 22 year ownership expires in the next 6 years it will not benefit me - It would be 2024 and 2026 before I had reached 20 years and I am hoping to retire in 2020