Spousal Transfer CGT Exemption - France

Pedro

Hi all

I'm just looking for guidance and any replies will not be treated as fact!

Does anyone have any understanding / knowledge of the CGT position on spousal transfers in France?

I.e. were a wife to gift a share in a property to her husband, would that be a disposal for CGT purposes, or would the gain be assessed on the husband's subsequent disposal of the property (as in the UK assuming it is not main residence)?

Just curious if anyone has explored this before and where you might have found the information.

Thanks in advance.

Oldhandnewhand

Assuming you are referring to two British nationals:
1) where are they tax resident
2) how long have the been in France and
3) where is the property situate

Pedro

Hi,
Thanks for responding.

1) where are they tax resident - Both UK

2) how long have the been in France and
3) where is the property situate
The property is a french holiday home, which they've held for c10 years. It's currently held jointly.

Oldhandnewhand

@Pedro said:
Hi,
Thanks for responding.

1) where are they tax resident - Both UK

2) how long have the been in France and
3) where is the property situate
The property is a french holiday home, which they've held for c10 years. It's currently held jointly.

11.1.2. Taxable Persons

See the last line

[https://french-property.com/guides/france/finance-taxation/taxation/capital-gains-tax/]"https://french-property.com/guides/france/finance-taxation/taxation/capital-gains-tax/")

Oldhandnewhand

@Oldhandnewhand said:

@Pedro said:
Hi,
Thanks for responding.

1) where are they tax resident - Both UK

2) how long have the been in France and
3) where is the property situate
The property is a french holiday home, which they've held for c10 years. It's currently held jointly.

11.1.2. Taxable Persons

See the last line

[https://french-property.com/guides/france/finance-taxation/taxation/capital-gains-tax/]"https://french-property.com/guides/france/finance-taxation/taxation/capital-gains-tax/")

I should have added:
https://www.gov.uk/tax-foreign-income/taxed-twice

As you can see HMRC will allow a relief against double taxation. However as there is no French CGT on gifts but a gift tax I don't think there is any UK relief because an interspousal "gift" isn't taxable for CGT anyway. E&OE

Pedro

Thanks for that @Oldhandnewhand - much appreciated.