We have a house with five bedrooms and an apartment and a separate five bedroom barn in six acres which we have been trying to sell for a couple of years but no takers. So we thought that we could sell the house and live in the barn. Would there be any Capital Gains Tax to pay?
We know it's a long shot and we have thought of this but we have to try everything. We had two visits in one day - one said there were too many rooms and they didn't want to live in a hotel and the second that there were not enough bedrooms! We have come to learn that you can never guess what a potential buyer thinks or wants. The main problem, we think, is that it is too big a property for the location but we have to work with what we have. We have tried the horsey market but they often want smaller accommodation but more land and advertising to self- sufficiency people but they have no money and want to live in a yurt!
I do not think it will make much difference which one you try to sell, people do not like living with or near to any seller of a property that they are buying, the property will never be their own while you are in the vicinity, this is common thinking by a lot of people and it could take a few more years yet before someone comes along and does not mind the situation.
All on one plot-the various plots were amalgamated and registered when we bought 13 years ago. In the past, on other matters, on consulting notaires, they often gave conflicting advice!
Barn is fully converted.
Hi Neil. Do the barn and the main building sit on the same plot ? I'd speak to a Notaire as the tax rules have changed recently. I'm going to have to pay capital gains on part of my eventual sale as my house is on a separate plot to my garden, although they ajoin eachother. The vendor didn't incur CGT 11 years ago when he sold to me. In addition, splitting didn't used to incur CGT, which a resident could do once in their ownership, but I have no doubt that's changed too, unfortunately. But do let us know what you find out ... Good luck and courage as they say ... I am also struggling through the long drawn out process of selling in France !!
Maybe you are already aware but barn conversions attract 20% TVA - unlike work you do on a dwelling which is rated at 10% by special dispensation from the EU
We have been resident for 13 years and have no other property in France or the UK.
If the 5-bed house is currently your main residence then there would be no CGT to pay. If it is a holiday home, there would. Then the barn would become your main residence and you could sell that after living there for a couple of years, again no CGT.
If you kept the main house and sold just the barn, you would probably have CGT to pay on it. But the market is picking up, so don't give up yet! Many homes remain on the market for at least 2 years, often more.