Capital Gains Tax

4 Replies

Anyone else having issues with capital gains tax on their property?  We are having considerable trouble with CGT calculations on a house we had built 16 years ago and are now selling.We had carefully prepared a list of all expenses in the build, and made a full list.  Some we expected to be thrown out such as garden but others like ground preparation and pool construction we did not!!The calculations have been farmed out by the notaire to a company called ACCREDITECO, because, we are told, Brexit!!The calculation company has thrown out our claims for the pool construction and many others (kitchen, paint, flooring, fixed fittings such as shower etc. ) because the bills do not have our French address on them (we were of course living in the UK during construction and not on the building site).  This is despite the house construction bills only having our UK address on them.They haven't allowed the septic tank costs, or the ground works costs, survey marking boundaries, terrace construction/materials.  The process is a complete shambles.  No rules are forthcoming and this is now holding up the completion/money transfer.Are there other companies who do this calculation in France, or is there just one company doing these calculations?

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Replies

Matthew -Parris-992373 1627568635

Over the last few years the type of work that can be offset against CGT has been reduced a lot So-

1.Any DIY including time and materials does not count

2.Any item or materials bought outside France does not count

3.You must produce bills relating to the building that you are claiming on so if it has a UK address on and no reference to an address in France it does not count

4 The bills must be from artisans registered in France showing their SIRET number and the fact that VAT has been paid 

5 The bills must relate to an improvement that was made to a house that in effect increases its "rental value" that is used to determine TDH and TDF.You cannot claim for items or work done that relates to the normal maintenance of the property eg replacing old guttering  or for work that replaces like for like eg replacing that brown bathroom suite with a white one or new tiling. If however the place only had an outside loo and you put in a bathroom then you might have a claim

You can claim anything that relates to selling the property such as diagnostics or if the geometre had to resolve a boundary dispute prior to sale.

You need to remember that house value is calculated in France on the square meterage and not on the actual physical decor of the house or any appendages that you may have eg a pool summer outside etc This is why Brits are often disappointed when they come to sell a French house having spent a load redecorating etc they do not get the same return as they would in the UK

And the really bad news They will try to charge you CSG as well!!!!


Peter-Bishop-999849 1627573980

the pool and materials for the terrace were all bought in France.  No excuses!!!

Dee-Foster-966596 1627710401

I have found accrediteco very good once I was dealing with them directly and not through the Notaire.. However, like you I had a couple of invoices from a French plumber turned down because it had been sent to my UK address and did not have the french address written on the invoice.. I also had a large invoice for removing all the old crepis from the outside and re pointing the pierre apparent turned down because it was considered to be cosmetic and not improving the comfort of the house. My main gripe now is with the Notaire who has not provided Accrediteco with the correct cost of purchasing the house in the first place.. You say that the pool and terrace materials were bought in France, but were they installed by a french registered installer? Mine was and it was passed.

Peter-Bishop-999849 1627711087

We have found accrediteco to be uninformative, not helpful at all, just blocking and grabbing all they can for the french tax system.  

The notaire was actually helpful for us and intervened believing accrediteco to be overly harsh with their accessement.

They finally accepted the pool bill, but have refused to accept a bill for the digging the foundations because the bill was sent to our UK address (at the time the land was just land and couldn't be sent there!!)

Both our house build and pool bills were addressed to our UK address, but we luckily found some correspondence from both which stated the build address to be in France.

The immobiler told us after submission, that she marked all her bills with the french address. Not sure if this would have been accepted but she indicated it worked for her.

Some advise for anyone building, and will sell one day, MAKE SURE ALL YOUR BILLS HAVE THE FRENCH ADDRESS ON THEM!!!

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