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UK Spring Budget: More detail on changes for Britons in France
Pension top-ups, capital gains, holiday lets and inheritance were all in the chancellor’s announcement
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How UK’s Spring Budget may affect Britons living in France
Changes include issues such as capital gains tax and pension top-ups
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Do we pay French CGT tax on the sale of our UK house?
Rules depend on the tax treaty signed between two countries
How are capital gains calculated on UK shares?
We are selling shares we bought in 1972 and these are showing considerable capital gains (purchase price £2, current price £22). Are capital gains for these shares calculated on their UK purchase price or value at time of taking residence in France? R.M
Since you are resident in France and not the UK, the Double Tax Treaty gives the benefit of taxing the gain to France.
The gain is based on the purchase price. So, you need to convert the acquisition cost into French francs in 1972 and then convert the francs into euros at the rate of 6.55957:€1, and convert the sterling sale price into euros at the rate on the day of the sale.
Please note that in light of owning the shares for more than eight years, you are entitled to a reduction of the capital gain of 65%.
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The information in this article is of general nature. You should not act or refrain from acting on it without taking professional advice on the specific facts of your case. No liability is accepted in respect of these articles. These articles are intended only as a general guide. Nothing herein constitutes actual financial advice.
