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Is UK capital gains tax refunded?

Reader's query on whether UK capital gains tax is refunded.

1 October 2016

We have been living in France for the last four years and are taxpayers. We have a prop- erty in the UK which we have owned for 40 years, at present being rented out. If we sold it we understand we would be liable in the UK for capital gains tax but I believe that would be refunded by France. Is that correct? C.H

Article 14 of the Double Tax Treaty says it is the country in which the property is in that will tax the gain arising on any sale. The UK did not previously levy any capital gains tax on non-residents, but has started to as of April 6, 2015. You only have to declare to them gains in value from that date to the date when you sell the property (more information and links here: tinyurl.com/uk-cgt).

France also in fact claims the right to tax the (whole) gain, but any UK tax paid would come off the French tax.

Reader's query answered by Hugh MacDonald

If you have a money query send it to news@connexionfrance.com We select questions for answer every edition

  • The information here is of a general nature. You should not act or refrain from acting on it without taking professional advice on the specific facts of your case.
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  • The Connexion welcomes queries and publishes a selection with answers every edition. However, please note that we cannot enter into correspondence on money topics. Queries may be edited for length and style. Due to the sensitive nature of topics we do not publish full names or addresses on these pages.
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