returning to UK selling house abroad

petaldust_2

We have decided to return to UK after 17 years and need to sell our house in France. We have no property in UK. How will HMRC treat the house in France if it is not sold?

Cook_County

Is it your main residence? Is it owned by you or by an SCI?

petaldust_2

It is our main and only residence. We understand that no tax will be due in France, but if we return to UK before the house has been sold, will it be seen as a holiday home? We will be obliged to return to maintain the house and the garden until a buyer is found. We will obviously need to find accommodation in UK.

Cook_County

Is it owned by you in your own names or - as most people would do - by an SCI that you own?

petaldust_2

It is in our own names. I assume an SCI is a company?

booksurr

petaldust wrote: »

It is in our own names. I assume an SCI is a company?

The French version of a property company is called a Societes Civiles Immobilières (SCI) and is transparent for tax purposes in France. This means that if you happen to be French you will be taxed on your SCI’s profits as if they were your own, and if you happen to be a citizen of another state, you are also taxed in France on your SCI’s profits, but subject to double taxation relief, if applicable.

an SCI is how most people are advised to own property if they have a holiday home in France. However, yours was your only (and thus main) property, not a holiday home, which may put you in a different position. I know nothing about French property tax so cannot comment further.