Selling inherited property in France - tax help please

alterego123

Hi,

I'm actually a regular on MSE but have created another username for this query as I don't really want everyone to know all of my personal affairs!

I am hoping someone can help with the following please:

I inherited a property in France a number of years ago which has not had anyone living in it for over 10 years now and I am now looking to sell it. It is worth around 25,000 Euros so not that much. The property belonged to my Grandparents and would actually have gone to my Mum had my Grandparents not outlived her. Now that both my Grandparents have passed away it has now come to me.

In terms of tax, I am trying to work out what I will owe.

Inheritance -
UK - none as estate valued at less than £325k.

France - I don't think I will owe any - see the link below

charleshamer.co.uk/french-inheritance.aspx (you need to add www. at the front as I can't post links), see the table near the top of the page and note number 2 directly below.

Capital Gains
UK - I am a bit confused about this as I do not own any property in the UK so I don't know if I will have to pay CGT on the foreign property as it is neither a second (owned) home nor my main home. I am currently renting in the UK and have never owned any property here.

France - I don't know where I stand with CGT in France as the property is not my second home but I do not live there either - does anyone have any advice? I have found some info but it is a bit ambiguous, see items iv. and v. on french-property.com/guides/france/finance-taxation/taxation/capital-gains-tax/rate/ (add www. at start)

Income tax:
UK - I don't know

France - I don't know - maybe - any ideas anyone?

If someone could make the links complete I would really appreciate it.

So does anyone have any advice? I know it's complicated but I am not really in a position at the moment to pay for expert advice.

Thanks.

agrinnall

I can do the links for you but I can't offer any help on the financial questions I'm afraid.

http://www.charleshamer.co.uk/french-inheritance.aspx

http://www.french-property.com/guides/france/finance-taxation/taxation/capital-gains-tax/rate/

nomunnofun

May I p.m. you on the French CGT question?

alterego123

Hi yes you can PM me.

00ec25

There are no UK income tax implications since it appears you do not let it out or get any sort of income from it

Re UK CGT, the fact you do not own another property is irrelevant. It is not and never has been your main home so it is not exempt from CGT, you are UK tax resident and therefore liable for all your world wide gains.. You are liable for tax on the gain it has made whilst you have owned it, therefore the difference between its value when you inherited it (even with no IHT due there will have been a valuation used for probate purposes that is your “original” cost) and the value when you sell it. You can claim your 10,600 allowance to offset against this gain so it’s very possible that there will be minimal/no CGT to actually pay

Note if you already have to file an SA return then you must declare this, even if you have no tax to pay.
BUT, if you do not have to file a return, then you may not have to declare the transaction to HMRC if there is NO tax to pay because the total proceeds of 25,000 euro are below the compulsory notification threshold if there is no tax to pay

alterego123

Thanks, that is very helpful re CGT from UK point of view.