Hi I feel I must warn people about our situation. We have just accepted an offer on our french house(holiday home). The offer was 165k euros. What we were not aware of is this.
1. A property which sells for over 150k has to have an outside agent , Not the notaire who sorts out the tax payable, at a cost to us.
2. We cannot claim for any of the renovations we have done to the property ourselves which was virtually everything. Can only claim for some land drains put in by French builder.
So when they take off the price we paid 47k 4and a half years ago,and the French builders bill 3750euros on paper it looks as though we have made 115k profit, BUT out of this profit no consideration is made for the 3ok we have spent on materials doing the place up. PLEASE let this be a warning to anyone renovating themselves on their second homes in France, you cannot put your bills through against you profit only those works carried out by a french builder who gives you a receipt.
Hi if it was 85k euros profit yes, but dont forget we are still liable as are all holiday homes when sold to 40% CGT also in England. We can offset 16% which we pay in France which leaves 24% still to be paid to UK inland revenue. When we purchased the house in 2002 you could still put your bills against the CGT, it only changed in 2004.This is where a lot of people make the mistake of thinking you only pay in one country, NO you still pay here, less what you pay in the other.So be careful what sites you look on regarding the rules and regs of selling abroad as they can change with each year.People seem to think the dual taxation law means you only pay in one country.
Originally posted by lamby: Hi if it was 85k euros profit yes, but dont forget we are still liable as are all holiday homes when sold to 40% CGT also in England. We can offset 16% which we pay in France which leaves 24% still to be paid to UK inland revenue. When we purchased the house in 2002 you could still put your bills against the CGT, it only changed in 2004.This is where a lot of people make the mistake of thinking you only pay in one country, NO you still pay here, less what you pay in the other.So be careful what sites you look on regarding the rules and regs of selling abroad as they can change with each year.People seem to think the dual taxation law means you only pay in one country.
How hard did you work for getting the +50K Euros? Do you realize that that is an 18 month salary?
How hard, we took 15months off work to do this project and funded ourselves, no income. As we lived in the Noth it was proving a nightmare to get over and spend a couple of days doing jobs.Yet another daydream our 5 year plan to renovate would have taken years. Noone knows what is around the corner parents get old and need looking after, thats why we are back here.I am not saying I would not have done it, I am letting people know the tax situation, it changes all the time and i beleive there are going to be changes again.
