When exactly should I sell my home in England to avoid French capital gains tax as they might view it as a secondary residence after I move to France in 2024?
When exactly is the house officially considered sold?
Here are some principle milestones:
When offer from buyer is made/accepted ?
Exchange of Contracts (equivalent of Compromis de Vent) ?
Completion of Sale (equivalent of Act Authentique) ?
Iāve a feeling this has been discussed a while agoā¦ but blowed if I can locate it nowā¦
I seem to recall that provided your UK property is officially on the market and sells within one year (possibly stretching into two) ā¦ you should be OKā¦
Others might well have more uptodate infoā¦ so letās see what comes forthā¦
Have you thought of discussing this aspect with your local Tax people in France ??
Your house is sold when the final sale contract has been signed. If you have lived in the UK for the previous 4 years as I recall there is a ātemporary non-residentā status that provides some leeway before you loose the CGT exemption.
But devil is in the detail so always best to get HMRC conifrmation.
Try this enquiry form (as a prospective non-resident!)
Fair enoughā¦ if you donāt yet know where you will be living in France in 2024, I can appreciate you donāt yet have a ālocalā French Tax Officeā¦
ah well, letās hope someone turns-up on the forum, who has perhaps done this sort of thing recentlyā¦
oh sorry! I though you were speaking about local commercial tax planning advisor firms.
wasnāt realising you meant local French Tax Officeā¦
I am bit challenged with my level of French so kind of discarded this route in my mindā¦
If you are moving to France in 2024, you will need to be braveā¦ re using your French language skillsā¦
It does help if any questions you haveā¦ are translated beforehand and you arm yourself with a ācrib sheetā for such visits. and (generally speaking) officials are helpful and patientā¦ but it can vary
EDIT to return to your question of āwhen to sellāā¦ can you sell NOW and rent somewhere when you have to finally move out once the Sale is completedā¦???
No, canāt sell now : british home is not yet ready, in the middle of renovation with intent to sell higher.
Yes, I can live in France even today. Have an appartment there that is declared as a secondary residence.
That is not correct! The tax authorities determine your fiscal residence by where your household is (usually the same as where you live, but not always), where you work, and where your centre of interests are. The amount of time here is not the critical issue. And being a fiscal resident is a matter of fact, not a choice.
Blimey - this has been rehearsed to death and back surely? Itās easy - you are allowed a year from moving to sell your former principal residence (?)
edit - and I seem to recall 2 or 3 years for the proceeds which you use to buy your new residence principal to be disallowed - would welcome a sense check on that one mind
We sold our main residence in the UK immediately (literally just a few days) before actually moving to France. We waited until a) after completion and b) after the physical receipt of funds. This was the only certain way we could find of ensuring that France would have no tax claims whatsoever on the gain from the sale of our UK property.
We were aware of the French tax authorities ānon statutoryā practice (of permitting a former overseas main residence sale within a year or so of last actual occupation), to be treated favourably by the French authorities. However we couldnāt find a definitive ruling - see screenshot from French Property News, so we played safeā¦
Steady John, this is part of @Herbertās research.
When we became resident here after many years of 2nd home ownership it never occured to me to ask such questions and happily our flat in England was sold within the week, but if I had thought of such a thing, a place like this is somewhere I would have come to first.
Welcome @Herbert btw.