FRENCH CGT AND SOCIAL CHARGE
The 15% allowance for refurbishment is given to those sellers who have owned the property for more than 5 years whether any such costs have been incurred or not. It also seems that the claim for purchase costs (notaire and stamp duty) is limited to 7.5% of the cost. I've excluded any selling costs for the purposes of my calculations to give a worst case scenario.
Using the calculator I gave you a link to I have entered the following figures which are in Euros:
Box 1 270,000 sale proceeds
Box 2 178,000 acquisition cost
Box 3 5/11/09 date of acquisition
Box 5 13,350 automatic purchase costs allowance (7.5% of purchase price)
Box 14 26,700 automatic refurbishment costs allowance (15% of acquisition cost)
Boxes 18 and 30 51,950 net gain(sale after 5/11/14 and by 4 November 2015
Box 38 CGT at 19% 9,871
Box 46 Social charges at 15.5% 8,052
Box 51 Additional tax at 1.2% 637
Box 53 Total CGT etc 18,560
Box 61 Reduced CGT etc charge for 2 sellers 17,923
Your French CGT and Social charges would be 17,923 Euros. The UK Sterling equivalent would be deductible from your UK CGT liability. You won't get a deduction for any improvements costs you have no receipts and invoices for but you get the 15% allowance regardless once you have owned the property for 5 years. Take a look here for information on longer ownership discounts.
The UK gain will be calculated by taking the sale proceeds and deducting from them the sum of the purchase price, stamp duty, legal fees, other purchase fees, selling agent fees, legal fees etc.
There are two rates of CGT, 18% and 28%. The rate or combination of rates that you will pay will be dependent on the level of your income in the tax year you sell the property. If you sell it in the current tax year, 2014/15, one of the following scenarios will apply:
1 If your income in 2014/15 including the taxable gain is £41,865 or less, then all the taxable gain will be charged to CGT at 18%.
2 f your income in 2014/15 excluding the taxable gain is more than £41,865, then all the taxable gain will be charged to CGT at 28%.
3 If your income in 2014/15 excluding the taxable gain is £41,865 or less but more than £41,865 when you add the taxable gain, then part of the taxable gain will be charged to CGT at 18% and part at 28%.