Club Clé France: Buying or Selling a second home property in France
We are proud to work in partnership with Ashton KCJ - Legal services. If we think our clients need further legal advice or have a specific legal question that needs solicitor involvement when buying or selling a property in France we can recommend...
Matthew Cameron and his team for expert advice.
Article supplied by Ashton KCJ - Legal Services.
Whether your second property is at home or abroad, careful planning will usually save tax of one sort or another. If you are selling a property which is not your main home (Principal Private Residence) then your key issue is likely to be Capital Gains Tax (CGT). If you are buying another property, reviewing your Will and checking your Inheritance Tax (IHT) position are likely to be key. The most important thing is to look at your overall position and all the tax implications together and then plan accordingly. This is where we can help.
Capital Gains Tax Issues:
When you sell a property which is not your main home, you may be liable to pay CGT at 18% or 28% on the gains. How much you have to pay will depend on various factors, including:
• If and when you have lived in the property.
• Whether you have made gains on other taxable investments in the same financial year that the house is being sold.
• Whether you are a higher or basic rate taxpayer.
If you are buying a second property:
By taking advice now you may be able to plan your ownership in a way that will mean you pay little or no tax if you later decide to sell.
Principal Private Residence (PPR) relief means that no CGT is payable on any gains arising when someone sells the home in which they live. If you have more than one property you can elect which property is your main residence if you have occupied both at some time. The election should be made within two years of having bought the second property.
The relief generally applies to the period during which you have occupied the property as your main residence, but the tax rules state that the last three years of ownership count as a period of residence even though the owner may not have been living there. So you can rent out one of your properties for up to three years before selling it without losing this valuable relief.
If you are selling:
Your options for saving CGT will depend on the timescales involved. If you already have a buyer lined up but have never lived in the property then it may be too late for tax planning.
You usually have to be able to demonstrate that you have lived in the property, and it has been your PPR, for at least six months but preferably a year before you are able to sell without incurring any CGT at all.
If you are not sure of your position, you will need someone to advise you on what your liability will be and help you to ensure that you don’t pay more tax than is strictly necessary. We can do this.
If you are buying or selling overseas the CGT issues may be different; our French Legal Services team offer this planning service for anyone with a property in France.
Other tax issues:
Buying an investment property, or buying a new home and renting out your old one, are circumstances which often require an individual to complete a personal tax return for the first time. Equally, dealing with property rentals will make an existing straightforward return for a taxpayer more complicated. Again, we can help.
We prepare UK personal tax returns and basic accounts for a wide range of individuals who do not need an accountant for other purposes. These include people who need to complete a return for the first time following a divorce settlement, a substantial compensation claim payment, or having inherited assets under a Will.
Second home abroad?
If you own a second home outside the UK, you need to find out about that country’s tax, property and succession regimes. You may need to make a new Will here in the UK and/or make an additional Will in the country where your property is situated. It is important to be aware that succession rules in some foreign countries can override the provisions you have made in your UK Will, and would therefore dictate who receives the property following your death and in what shares.
If you own a second home in France, our specialist French Legal Services team would be happy to advise you on French Wills, IHT and estate planning matters. Whilst an English Will is normally valid in France, it is usually preferable to prepare a separate French Will dealing with the succession of a French property.
French law:
French law imposes strict rules of succession, determining who is entitled to inherit. Children have fixed rights in the estates of their parents, but problems are often caused by the fact that step-children are not recognised in the same way as natural children. Whilst living in England it may be possible for you to anticipate everything going from husband to wife and then back to the husband's children from a previous relationship on the wife’s death, this would cause various problems under
French IHT:
Not least of these is the issue of French IHT, where the rules are very different from those in the UK. Without careful planning, it is quite possible for 60% IHT to be imposed on French assets, or the same assets can end up being taxed in both jurisdictions without any relief against double taxation. It is also the beneficiaries rather than the estate who will be taxed on what they receive and each will have an IHT ‘allowance’ depending on their relationship to the deceased rather than the standard UK ‘Nil Rate Band’ arrangements.
Do I need a French Will?
If you do not make a separate French Will, the other complication which can arise in addition to the IHT position is that France does not recognise the role of executors. In an English estate, the executors or administrators will be responsible for the deceased’s assets until they can be distributed. In France the assets become the property of the beneficiaries from the time of death. The requirement that an executor hold everything while the succession is sorted out is likely to cause delays.
If your English Will is constructed in a way which uses Trusts in any form, then a separate French Will becomes even more relevant. Historically, French law has not generally recognised trusts and so the mechanics of an English Will may cause complications for French lawyers dealing with the French element of an estate. More recently, a new tax regime on Trusts has been introduced in France imposing a tax on assets held in Trust so English trustees could find themselves having to liaise with the French tax authorities to avoid penalties.
Comprehensive Planning:
It is important when preparing Wills in more than one country to make sure the documents work together to achieve your goals and that one does not accidentally revoke the other. We can help you to prepare English and French Wills to achieve this, or to prepare a French Will taking into account any clauses in your existing English Will. If you have overseas property which is not in France, we are members of an international association of lawyers called 'Eurojuris' and can put you in touch with someone in the country of your choice who can assist.
Want to contact Ashton KCJ ? - then simply complete the Enquiry form below:
The information that you give and that we obtain through you using this website may be used by this Company and by our partner companies only for purposes in connection with your use of this website and for marketing activities of this Company and partner companies. By using this site you confirm your consent to this. If you do not want to receive any marketing information from this Company and/or our partner companies then please notify us.
Ashton KCJ is authorised and regulated by the Solicitors Regulation Authority (Recognised Body number 45826). The information contained in this guide is of a general nature and specific advice should be sought for specific situations. We believe the information to be correct as at the time of publication, February 2013. While all possible care is taken in the preparation of this leaflet, no responsibility for loss occasioned by any person acting or refraining from acting as a result of the material contained herein can be accepted by the firm or the authors.
For everything you need to know about French property for sale visit www.clefrance.co.uk
Club Clé France: Car Insurance
We have been working with Allianz Insurance since 1999 and more recently with the excellent Franck Haloche, who along with his team offer a friendly, professional service and they also speak very good English!
Until 31st December this year we are offering the first two months Car Insurance FREE!
From a moped to a Harley Davidson, from a Twingo to a Rolls Royce, we can insure whatever type of vehicle that you may own wherever you live in France and your public liability is always included in the contract.
Car Insurance in France -
We also have the possibility to insure your vehicle with an English registration plate when you move to France. This lasts for up to 3 months at which point you must obtain French plates.
If you have a Health Top Up and a Car policy with us and decide to have a Household policy too, you can benefit from 10% off your contracts, making a considerable saving.
When looking for a quotation from a French insurance company, in English, that is suited to your specific health insurance needs? or just looking for advice / information about the health insurance system in France? then...
Franck and his English speaking insurance team are proud to be of service to you.
Cle France in partnership with Franck commit ourselves to providing you with excellent service you can rely on.
Franck and his team's main purpose is to establish a friendly, professional rapport with you and help you to decide what sort of insurance you need.
They can also review your current cover to ensure it still meets your needs and those of your family.
Car, House (Building and Contents Insurance), Medical Top-Up (Affordable Top Up insurance for you and your family). Allianz offer the security of a strong French business with the convenience of an English speaking insurance team, so your quotations can be provided in English.
Franck and his team look after your Insurance requirements:
Contact us and let us know your specific needs so that we can provide you with a detailed quotation suited to your family's specific requirements.
CABINET ALLIANZ
Franck Haloche.
Currency
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Win 1000 Euros or 2 runner-up prizes of 500 Euros Competition
Cle France have teamed up with FC Exchange to give you the opportunity to win €1000. All you have to do is register with FC Exchange from today until the 31st of March 2016 and all entrants will be entered into a prize draw to win €1000 with two lucky runner ups both winning €500 Euros each.
So there are three prizes up for grabs. Enter the competition here.
When registering please mention "Cle France competition" to be automatically entered into the competition.
Terms and conditions
1. This Prize Draw is open to everyone aged 18 or over, excluding employees and the immediate families of Cle France, or anyone professionally connected with this promotion.
2. Entries from third parties or agents, bulk entries or incomplete entries will not be accepted.
3. Corporate or business accounts opened with FC Exchange are not eligible for this offer in relation to this offer a “Customer” is defined as a registered private client of FC Exchange
4. To be eligible for entry into the Prize Draw you must have successfully opened an account with FC Exchange and you must have been introduced to FC Exchange via Cle France Limited, notably www.clefrance.co.uk
5. A customer registration is deemed completed when they have passed our customer verification checks, a requirement of Money Laundering Regulations
6. You will be automatically entered into the Prize Draw if you open your account with FC Exchange between 5 February 2016 at 00:01 and 31 March 2016 at 23:59
7. The prizes are, the first prize of 1000 Euros or Sterling equivalent (First Prize) and two runners up prizes of 500 Euros or Sterling equivalent (Runners-up Prize)
8. Cle France Limited will carry out the Prize Draw on 4 April 2016 (the 'Draw Date'). Cle France Limited will draw one First Prize winner and two Runners-up prizes at random from all the entrants
9. The Prizes are provided by Foreign Currency Exchange Limited trading as FC Exchange
10. FC Exchange will contact the winners within one week of the Draw Date using the contact details provided. The prizes will be added to the FC Exchange trading accounts of the winners to be used by the winners for an international money transfer
11. If the winner cannot be contacted within 28 days of the Draw Date, and reasonable efforts have been made to do so, FC Exchange reserves the right to withdraw that entrant's entitlement to the Prize. If FC Exchange cannot contact the winner within 28 days, we will conduct the draw again
12. Cle France reserves the right to; terminate this promotion or alter any of the terms and conditions at any time, if deemed necessary in its opinion, or if circumstances arise outside of its control. And you agree that no liability shall attach to Cle France as a result thereof
13. Cle France is committed to protecting customers' personal data. Please refer to the privacy policy on our Website
14. The decision of Cle France is final and binding and no correspondence shall be entered into.
15. By entering this Prize Draw, the winner agrees to take part in any reasonable promotional activity including photographic publicity.
16. Cle France cannot be held responsible for any incorrect or inaccurate entries; inaccessibility or unavailability of the internet, the website or any combination thereof; neither can we be responsible for the failure to fulfil the obligations of any third party involved in this promotion, although we will always endeavour to minimise the effect to the participant of any such failure.
17. The Prize Draw terms and conditions shall be construed in accordance with the laws of England and Wales. Cle France Limited (company number 7056720) whose registered office is at 2 Maplethorpe Court, Priory Street, Ware, Hertfordshire, SG12 0DD.
18. FC Exchange reserves the right to amend these terms and conditions and withdraw this offer at any time without penalty or liability.
For everything you need to know about French property visit www.clefrance.co.uk
Gite accommodation for your viewing trip
We are very pleased to inform our clients of the superb accommodation available at "La Goderie". If you are going on a viewing trip with us to Lower Normandy or Mayenne then this would be a good base for your stay.
We also know the property is a nice place to stay because Cle France sold the property in 2012 and the owners now run this stunning Gite Complex with a high level of satisfaction from all who have stayed there.
So whilst you are viewing your chosen French property from our extensive portfolio of lovely properties for sale in France why not stay in a nice comfortable Gite and rest your feet after a busy day house hunting in France.
Situated near to Colombieres-du-Plessis, 53120, Mayenne.
To make a booking simply scroll down to the Enquiry Form.
All year round accommodation:
La Goderie is a converted stone Longere which provides three well equipped houses and a studio apartment.
2 units are available for rental (although the total sleeping capacity is 20+ which can be negotiated for very special occasions).
All the houses are maintained to high standards with modern conveniences to make your stay as relaxing as possible. Sky TV, WiFi, a heated indoor pool, stunning outdoor swimming pool, 9 hole crazy golf and much more make this a wonderful proposition for families.
There are also plenty of quiet areas to sit and read, enjoy the garden and share that obligatory bottle of wine with special friends and family.
Located 5 minutes away from Gorron, with a wide range of amenities, La Goderie is perfectly located to explore the historical towns of Domfront, Fougeres, Lassay les Chateaux and Bagnoles de l'Orne with their castles, chateaux, gardens, spas, shops, markets and activities. Alternatively, you will find La Goderie perfect if you wish to simply relax and enjoy the tranquillity.
Accommodation:
Hirondelle Sleeps 4/5 (2 Bedrooms):
Hirondelle is a compact rustic cottage which retains the original features of the barn. With two comfortable bedrooms (one double and one bunk bed room with trundle), a bathroom and open plan living space the cottage provides everything a couple, or family, could wish for.
A private patio with dining furniture overlooks the gardens, where you can sit and watch the children play.
La Grande Cheminee sleeps 3/4 (2 Bedrooms):
La Grande Cheminee is a spacious rustic cottage which retains the original features of the barn. With two comfortable bedrooms (one double and one bunk bed room with trundle) and a shower room upstairs, a kitchen, utility room and downstairs toilet with an open plan living and dining room downstairs the cottage provides everything a family could wish for.
A private patio with dining furniture overlooks the gardens, where you can sit and watch the children play.
Notes on accommodation:
You may be pleasantly surprised by the amount of groceries and household goods provided to get your self catering holiday off to a good start. A bottle of wine and fresh bread provided as usual elsewhere is all well and good - unless you have a hungry family to feed - and then you will find the eggs, butter, sliced bread, juice and much more useful items available.
La Goderie is cleaned and maintained to a high standard at all times. Your cottage will be cleaned thoroughly, and stocked with plenty of towels and linens so all you have to do after your journey is unwind and enjoy this beautiful place and all the facilities it has to offer.
The information that you give and that we obtain through you using this website may be used by this Company and by our partner companies only for purposes in connection with your use of this website and for marketing activities of this Company and partner companies. By using this site you confirm your consent to this. If you do not want to receive any marketing information from this Company and/or our partner companies then please notify us.
For everything you need to know about French property for sale visit www.clefrance.co.uk
