In the UK you can enable your children to avoid CGT by gifting them your property, as long as you live for 7 years after you've done it. Does anyone know (probably everyone except me does) whether such a thing is possible also in France?
In addition, CGT in UK has nothing to do with your survivng 7 years. That is with regard Inheritance tax on unconditional gifts, called a Potential Exempt Transfer [PET].If you gift a property in UK and then put some condition on it, like when sold the kids are to give you the proceeds, this is a gift with reservation of benefit , affectionately known as a GROB!
This is something you should not undertake without professional advice from someone who knows the implications on both sides of the channel. You have to look at gift taxes which are the same as succession. Your kids have €100k lifetime gift from each parent they can receive without tax but you have to survive 15 years in full [ no taper]. You can arrange a usufruit, but this too will have a value ultimately, and again is just for estate planning not CGT. The fees for all this may outweigh the benefit. I am not sure why you look at this from a Capital gains Tax angle, overall.Did you mean IHT? If the property is not the childrens main home when sold they have to wait 30years to avoid all CGT in France that may be due after expenses.They also may have some to pay in the UK. Is this not your main home in France? All in all this sounds a confused approach and urge you to talk through your objectives and concerns with an adviser.
Thanks, guys. This is good news. I don't imagine my kids would throw me out but in any case Andrew's advice is good.
details here + very easy not to get thrown out - you just write into the agreement that the parents have the usufruit. It's a standard thing within farming families, including my inlaws.
Met a former Belgian policeman at a party once. He'd made over his property into his son's name so that no inheritance would be paid. Son, an airline pilot, came to visit with his wife. They then threw the parents out, saying it's ours now. And there was nothing the man could do. After 5 yrs he was still shell shocked and living in a rented house....bit shocking. We all think our kids wouldn't do this to us - I didn't think my sister would try and swindle me out of a joint inheritance - but you can never know. Be wary.....