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thank you for your response. Yes I did live in the house with my husband and our 2 children until he died. We bought the house in April 2007 and lived in it for over 5 years. The house is now being let until I decide what to do with it.
I moved to France to be near my family. I still do work with my UK company - now from home - but the reason for the move was not professional. Am I right in saying that I would need to sell it within 3 years of having left in order to avoid capital gain tax? And I assume the tax is only on the profit I make from the sale, right? Sorry to ask all these questions, I am clueless! Thanks
Sorry I just responded but I'm not sure I am allowed to get more advice as it says "status: finished" :( I am happy to pay to finish the conversation if that's necessary. We bought the house for £315K in St Albans, it is now worth about £400K. The probate value was around £35K (why does that count?). The children and I have now been in France for 18 months and 2 weeks so I have passed the limit - right?
Thank you for your precious help.
So, the year of sell does not count? the 83 months refer to the length of time between the purchase and now - correct? It is still a little unclear to me, sorry but would you mind explaining the 18months and the 3 year rule please?.... thank you so much, I will certainly re-rate to the best rating!! From what I understood of the 3 year rule was that I had to sell the house within 3 years of not being a UK resident in order to avoid capital gain. I only pay tax on the difference between the purchase price and the sell price, right? When I said clueless, I wasn't joking! Re. the probate, apologies for the confusion. Yes my husband left a will and left the house to me, the amount of money I received from the probate was £35K from his pensions - nothing else. Does that make a difference in your calculations?
I can't thank you enough for your help.
Right, I think I understand, it is not straight forward but does make sense - I think! I might contact you again if I have any more queries but I will leave you in peace for now.
I do realise the market is pretty good but selling the house is very difficult emotionally and at the moment, it is being paid off by being let so... The children are still little (5 and 9) and have very fond memories there of their dad etc.. so selling it would be a big step for us all.. but I did want to understand the tax implications. I seems that I don't need to worry about it too much so that is a big weight off my (very busy) shoulder!
Anyway, thank you so very much for your expert advice, I will recommend your services.
With very kind regards,
That made me laugh a lot, thank you! I am also thinking of the future and having a place for them where they can go if they want to ever study or live in England... A long way off but hey! Thank you for everything.
Best regards, Violaine
Sorry I have been reading our conversation again and there is still 1 thing I don't understand. You said the time of sale doesn't count - can you explain that because I don't get it. You mentioned the 82 months (on 18months rule), I have owned the house for 83 months - giving 1 months worth of capital gain - so the time of sale clearly matters, no? Or have I got it completely wrong?!