Backdating capital allowances
You are also able to deduct from the gain allowable costs of purchase and sale and expenditure on property improvements.If the capital gains tax due in the UK is in excess of that paid in France you will be liable for the difference.In addition, since 2015, the UK has also imposed capital gains tax on the sale of property of former residents, although only any gain since April 2015, and the final 18 months of ownership normally qualifies for relief.A tax free allowance of £11,700 (2018/19) also applies.The rates are those that apply before exemptions and allowances, which are considered in subsequent pages. Resident of France If you are a resident of France then the applicable basic tax rate is 36.2%.This sum comprises capital gains tax at the rate of 19% plus 17.2% social charges.Liability to the tax depends on the number of owners, as the calculation of the gain is divided between the owners.
In all cases of the sale of real estate in France the tax is applied at the time of the sale in the offices of the notaire, and will be deducted from the sale proceeds before the cheque is handed over.
However, residents in France from the EEA who are not affiliated to the French social security system are now exempt from the social charges, but subject to a 'solidarity tax' () at the rate of 7.5%.
This clearly applies to residents who are in receipt of an S1 certificate of health entitlement.
In the case of former residents of the UK resident in France a tax treaty signed between France and UK, operative from 1st January 2010, makes you liable for capital gains in France on the future sale of your former home.
You will be entitled to the same relief on French capital gains tax as you would otherwise receive if the property was located in France.
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In addition, if you become permanently resident in France, and then subsequently sell your former home or other property, you could become liable for French capital gains tax on the sale proceeds.
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