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bigduckontax, Accountant
Category: Tax
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We plan to sell our jointly owned holiday house in France.

Customer Question

We plan to sell our jointly owned holiday house in France. Husband has £95k accumulated losses and is higher rate tax payer, wife is not a tax payer.
Purchase price including fees etc was Euros 92k, sale price cEuros 300k owned for 30yrs therefore no French CGT. Can you give best way to minimise UK CGT.
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello Derek, I'm Keith and happy to help you with your question.
Assuming that you have made no improvements to the holiday house (eg installation of double glazing, central heating, extensions etc) then you will have made a gain of some 208K euros. As it is in joint ownership that is 104K each. You each have an Annual Exempt Allowance of 11k which reduces the gain further to 93K euros each. Any capital improvements, but not maintenance, you can deduct from this figure.
Let us assume an exchange rate of 0.832 (for the full list see,
you have each a gain of say GBP 77K.
Husband has 95K losses brought forward so he has no CGT liability and 18K left to carry forward. Wife is taxed at 18% on the first GBP 31865 and at 28% on any surplus over that, say 22K tax due.
I fear you will have to bite the bullet on this one and bear in mind Benjamin Franklin's dictum that in life there are but two certainties, death and taxes.
I do hope I have thrown come light on your question for you.
Expert:  bigduckontax replied 3 years ago.
I have made an error in my post, deep apologies. I applied the Annual Exempt Allowance in euros instead of GBP.
104K adjusted to GBP gives 86428 less 11K is say 75K gain taxable, say 18K CGT due on your wife's account only. Better than a poke in the eye with a sharp stick!.