Taxation on selling a property in the UK and moving to France


(Ann Gardner) #1

My mother 77yrs , is selling her house in the UK for roughly four hundred and fifty thousand pounds.

She plans to live here in France with me. She has a pension from the NHS and state pension , she is taxed at source in the uk on this.

Does anyone know if she will have to pay tax on the amount achieved from her UK sale, if so roughly what is the percentage?

Many thanks!


(Mary Taylor) #2

Hi. The pension income issue may not be quite so simple. It depends who pays the NHS pension. One source is always taxed in UK and one is due to have tax paid in France. It should say on her bank statement what the payer it is.The state pension is always due to have tax paid in France not in UK if she is gong to be fully resident. Neither may mean much in way of tax, depending upon how much it is, but you will also need an S1 from Pensions in UK [DSS DWP] to give her her medical cover and carte vitale in France, plus it negates social charges on foreign pension income. There is also a form she needs to do when she submits her tax return here, which confirms she is tax resident in France, appears on the system, and thus HMRC who will issue a no tax code to the relevant pension sources, and they send the UK pension without UK tax deducted.....eventually. There is a period of time where UK tax will be deducted where french tax is due, and then one has to claim it back.....so doable but not as straightforward as it may seem. Then those pensions taxable here, should appear on the tax return in France.If you would like to message me I can send you a link for the HMRC forms.


(Brian Milne) #3

That is the usual tax year from a 1 Jan to the next, therefore becoming resident on 2 January gives one year, 11 months and 30 days. It is that kind of 'year', so not a day to the year on the dot.


(Ann Gardner) #4

Yes, she is definitely selling before coming here


(Brian Milne) #5

She must sell the house before coming here then. If she is already resident here at the time of the sale, then since 2011 CGT is payable on a property sold in the UK under the terms of the double tax treaty.


(Ann Gardner) #6

Thank you Colin, it is as I suspected.


(Ann Gardner) #7

That’s brilliant, thank you so much!


(Colin Granville) #8

Debra is correct in that any principle residence sold in UK is free of capital gains tax. As far as pension tax is concerned, all of our pension incomes are under the £10,000 odd each allowance so we have no UK tax to pay. We declare this on our French declaration of income each year and we get a lovely 'Zero tax to pay' statement in reply.