Take a look at the latest news bulletins on French capital gains tax using the links below :
CHFS BULLETIN AUGUST 2015 : PRLEVEMENTS SOCIAUX : HAVE WE NOW REACHED A CONCLUSION ? - Have also a look on the Conseil d’Etat decision no. 334551 of 27 Juillet 2015 (French version)
CHFS BULLETIN MARCH 2015 : APPEALING THE PRELEVEMENTS SOCIAUX : ECJ's DECISION. - Have also a look on the ECJ DECISION CURIA-C 623.13
If you are lucky enough, the sale of your French property will result in you realising a gain on your investment. The downside to this is that the gain will normally be assessable to tax in France and again in the UK if you are UK resident.
Until recently, it was often the case that the French tax payable fell below the corresponding UK tax due and, being available as a credit to offset against UK Capital Gains Tax (CGT), in the wider scheme of things the amount of French tax actually paid wasn’t so much of a concern.
With the hike in the French tax rates which took place in August 2012 and January 2013 and the reduced taper relief effective from February 2012, this is no longer the case.
Consequently, there is now more of anincentive than ever to work at minimising the French tax liability.
Whilst - since 01/01/2015 - the notaire is usually the one responsible for calculating the French tax due and submitting the tax return ("2048-IMM"), they don't have any incentive to ensure such tax is at a minimum. Meanwhile with fiscal representatives having held the calculation responsabilities from 2005 until the end of 2014, many notaires will not be familiar with rules particular to non-residents and will often not have the time or inclination to trawl properly through the reams of invoices and payment justifications needed for improvement works to be allowed as a deduction when calculating the gain.
In our experience, typically, the notaire will not:
When selling your French property, it is therefore down to you to ensure you pay the minimum amount of French Capital Gains Tax (Plus-Values).
We are here to help you achieve the above by addressing each of the points raised along with others which may be relevant under current French legislation.
On your behalf we will:
We liaise to obtain all necessary information and documentation from the Notaire, yourselves and any third parties (such as building contractors, architects, valuers) necessary to minimise the CGT payable. We are then able to :
You decide on the extent of our service. We can limit our involvement to dealing with the French tax declaration or include our service completing the UK self assessment return as well.
Our role for the UK assessment is to:
It may be clear that a taxable gain will not arise in France or the UK. In such cases, opportunities exist to register the sale as a loss in the UK. These losses may be used to avoid UK Capital Gains Tax due on any other investments such as shares, unit trusts, other investment property, gifts, and also for Inheritance Tax planning.
Charles Hamer are available to draft a capital loss assessment to submit and be approved by the UK tax office, for such use.
You may have already sold the French property and paid the tax due, as assessed by the fiscal representative or the notaire, but have concerns that you may have overpaid.
If the sale took place less than 3 years ago* , we are able to:
*An appeal may be made at any time up to the 31st December 2 years following the year of the sale.
The purpose of our service is to provide both value for money and peace of mind.
Not only is there the potential for a discount on your fiscal rep. fees, but the trust invested in us could save you £1000's in CGT payments and put you at ease when selling your French property.
Having reviewed the services that are available the next stage of the process requires more information from you to allow us to make an accurate assessment of any liability due in France and the UK.
In order to do this, please complete our questionnaire and return it via email to either Jon Pawsey (Jon@charleshamer.co.uk) or Emilie Mengin (firstname.lastname@example.org)
If you have any further questions regarding our services or how to proceed, please don't hesitate to send an e-mail to Jon@charleshamer.co.uk or email@example.com, or call us directly on +44) 01844 218956