Simple Question on Capital Gains Tax

I’ve gone through all of the posts but can’t find out the answer to the following situation (and avoiding the question of tapered relief);

Year 1 - buy UK property <£200k and live in it as primary residence as UK tax resident
Year 10 - buy a holiday home in France
Year 15 - UK house is valued at >£400k. Move to holiday home in France, become French taxpayer, holiday home becomes primary residence. UK property becomes secondary property.

If in the future the UK secondary home is sold, what value would the French Authorities use as the base point for the calculation of CGT?

I think you need to ask a tax accountant in this case. But normally, if you get taxed in the UK on real estate, then France should not tax you again! But with everything in the air with Brexit, you better rely on a professional!

As Annie has suggested you really should take advice. There will be CGT to pay in the UK and France.

Link to the UK HMRC guidance

There could be a discount for the time it was used as a primary residence, but I am only familiar with the Irish tax law and laws change whenever the Government needs money! With Ireland having been a British colony, there is a chance somewhere in the tax law is a clause that could be beneficial for you, but that knowledge you will need to pay for!

Surely, Price it sells for minus the Price you paid for it… that will be your Capital Gain… (with a little fine-tuning to allow for fees etc…) :thinking: :thinking:

I believe France charges CGT at 36.2% on houses owned less than 30 years… which are NOT a main residence.

hopefully some give and take between the 2 countries… :crazy_face:

22 years for Plus Value (CGT), 30 years for Social Charges.

we won’t squabble… it’s Tax one way or another… I got the figures from pap.fr and it will be swings and roundabouts…
with a convention between UK and France…