I have been informed that on selling our house secondaire we must pay CGT.
On doing a bit of research I have found this article, as we are retired and our income was below the top threshold for 2010 Ithink we should be exempt from CGT, what are the readers thoughts please,
However, in these circumstances there is a liability to income tax on the proceeds.
Where the property is held in joint ownership then this threshold may be multiplied by the number of owners.
vi. Elderly/Disabled Persons in France
Those resident and of retirement age, or registered disabled, are exempt from the tax, provided their annual income grants them exemption from payment of the taxe d'habitation, and they were not liable for wealth tax (ISF) in the year preceeding the sale.
The reference period for determining your income is two years prior to the sale.
Accordingly, for a property sold in 2012, it will be your income in 2010 that is used to determine your entitlement to this concession.
The maximum income threshold for 2012 is €10,024 for an adult, and €15,376 for a couple, as defined in your income tax notice (the revenu fiscal de référence) for 2010.
An elderly person admitted to a 'medicalised' retirement home is also exempt from capital gains tax on the sale of their home for two years from being accepted into the home. The concession is also subject to the same income and wealth tax criteria above.
The same exemption applies to a disabled person admitted to a specialised establishment.