Can someone please advise me of what capital gains tax discounts there are. There is a potential profit of 45,000 euros. As having done the work myself, I am aware that I can only claim the purchase price and buying costs, and whatever costs incurred in selling.
un abattement pour durée de détention : lorsque l’immeuble cédé est détenu depuis plus de 5 ans, la valeur de la plus value est diminuée d’un abattement de 10% par année de possession au-delà de la cinquième. Ainsi, après 15 ans, la plus value réalisée est complètement exonérée.May 30, 2022
an allowance for the period of ownership: when the building sold has been held for more than 5 years, the value of the capital gain is reduced by an allowance of 10% per year of ownership beyond the fifth. Thus, after 15 years, the capital gain realized is completely exempt.May 30, 2022
probably best to check with the Notaire…
There is a useful simulator on this site, which explains the calculation. In French, so say if you need English instead.
So with 10 years ownership you’ll get 30% reduction off capital gain and about 8 off social charges (unless you hold a UK S1)
If you’ve done any work on the property, that does count provided you have receipts for materials and there used to be a percentage you could add on for the work you did yourself - or at least that was the case a few years back when I was in that situation! The notaire should be able to tell you as they did for me.
When I sold in february we could only claim for actual artisan’s invoices produced, no work or materials done/bought by ourselves.
Must have changed then, @shiba , so that’s worth knowing - either that or our notaire was staggeringly accommodating
We sold a property this year that we had had for 22 years, so they deducted a flat 15% from the gain for “works”. Which was more than the invoices we could find…
We presented the Notaire with the required artisan invoices to offset the gains and he accepted them but warned me the impôts might decide to look closer if they wish in the future. No problem, I kept everything on paper and on computer files as did my family and we were able to proove much more was spent than the gains aquired and this is from owning the property getting on for 30 years as a principal residence.
I know a Brit couple who moved out of their main French residence into their French gite for 12 months… (doing all the necessary changes to insurance etc…)
so that they could then sell the erstwhile gite as their main residence without attracting any taxes on the profit made… and it worked !!!
No CGT or social charges would apply anyway after 30 years, so what benefit did you get from having the invoices?
The kids were hit with a massive bill each, less than 24hrs before signing final act and me leaving. It may have been succession related but Notaire explained that if we could furnish real invoices to proove all the work, they would cancel out this large demand and luckily we could by twice over and that is when he said on all sales that gains are cancelled only by artisan invoices and not DIY/materials bills. I think he wasn’t properly au fait when he first started all the paperwork some months prior being newly qualified etc.
Your husband died and the kids inherited half the house that was sold? So for them it was maison secondaire, and they hadn’t:owned it for very long? So yes tax would be due.
Whatever the percentage the important thing is that they hadn’t owned the house for 30 years.
Didnt Sarkozy change the rules so you had to own for 30y to escape CGT?
It’s on a sliding scale @Corona - reducing to zero at 30 years
22 Angela for tax, 30 for social charges.
Thanks @JaneJones I knew about the 30 but not the 22!