CGT on French Home - UK CGT too?

[RegMolehusband]

My partner sold her French holiday home last September 2011 and French CGT was extracted by the notaire before the balance of the funds was released.

There seems to be conflicting and confusing information on various websites as to whether the gain has to also be declared for UK CGT purposes, and I believe the rules have changed recently.

Does anybody have experience of this or be in a related business and could provide some enlightenment?

[Eric Mc]

The normal procedure is for the gain to be declared to the UK tax authorities. If French CGT (if that's what it is) has already been paid in France, then there should be a credit against UK CGT arising.

[sumo69]

Is your partner tax resident and domicile in the UK?

If so, any gain is reported and taxed here with a credit for any French withholding tax up to the rate chargeable in the Uk on the gain.

If you are unsure how the terms resident and domicile are interpreted by HMRC, drop me a PM if you like.

David

[RegMolehusband]

Yes she is both tax resident and domicile in the UK.

Thank you both, I'll get her to have a look at your replies later and perhaps PM you David.

[wattsm666]

How was the French property owned - sometimes they are owned through a company, which will confuse matters.

[RegMolehusband]

Privately owned, 50:50 her between herself and her ex-husband.

[wattsm666]

RegMolehusband said:

Privately owned, 50:50 her between herself and her ex-husband.

Eric is on the money then.