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bigduckontax
bigduckontax, Accountant
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I have a question about capital gains on my UK home if I

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Hi, I have a question about capital gains on my UK home if I move to a house I own with my husband in France.
Assistant: What are the assets or property for this capital gain?
Customer: It's a house
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: Me and my husband married in 2016. We each had our own homes. I moved into his house and my parents moved into mine rent free. Last year my husband sold his house. We moved into my house (with my parents) and bought a small house in France. He's now living there permanently and I plan to move there permanently later this year. I am wondering what would be the impact on capital gains if I sold my house if I am legally resident in France. And is here anything I can do to minimise it? Thank you

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Firstly, I cannot assist you with the French taxation position. French taxation is so complex and so constantly changing that the employment of a local professional is essential. As far as the UK is concerned you are selling your sole or main domestic residence so Private Residence Relief (PRR) applies which relieves Capital Gains Tax (CGT) at 100%.

I do hope that I have been able to set your mind at rest on this matter. When you leave the UK to go and live with your husband in France don't forget to fill in a Form P85 and send it to your tax office. On receipt, HMRC will classify you as non-resident.

Customer: replied 2 months ago.
Hello, thank you very much for your prompt and clear answer and I will take separate advice on the French position. That's a very good point. Sorry to ask a supplementary question. Would HMRC still consider my house as my sole or main domestic residence even if I have declared myself as non-resident and living in France. Surely they will know that I am not living in it. This has all come about a bit sooner than expected because I think I may have to leave before March 29 and won't be able to sell it before then, even if I wanted to. Thanks again. I also realise I may need to get further advice but your guidance is really helpful. It's a bit of a minefield.

It doesn't matter whether you are living in it or not if it is the only house you own it still remains your sole or main domestic residence. The Inland Revenue (IR) as was lost this case big time in 1975 when they tried to interpret the law as sole and [not or] and tell service personnel that their service quarters were their residence, not the homes they owned elsewhere. I arrived in Nepal to find the station in an uproar over this and one pithy letter written by a captain, me, resulted in the MOD having to hurridly cancel a Defence Council Instruction that the IR had persuaded the Department to publish.

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Customer: replied 2 months ago.
Thank you. That's brilliant. Sorry for the delay in replying. I will certainly give you an excellent rating. Best wishes.

Delighted to have been of assistance.

Thank you for your excellent support.