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Sale Of Property

Posted by alfie5 - Created: 4 years ago
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10 replies (Showing replies: 1 to 10)

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Posted by mortimer29 - 4 years ago

The rule is that the state have three years starting from the 1 January following a declaration or sale to ask for money it thinks has not been paid. You are unfortunately, well within this period.

If the house was a being restored from scratch with a "demande de permis de construire" and a "changement de destination"  in other words full planning permission and a change of use application then VAT should have been payable on the sale and the notaire fees would have been much lower. Any artisan bills you had, could have been used to offset the VAT demand. 

In this case the notaire seems to have overlooked the fact it was a total restoration and incorrectly carried out a standard sale. To comply with the french authorities the notaire will have to reopen the dossier and recalculate the VAT due (the vat rate on the sale price as of that year, minus the vat on any bills you can produce for the works). The notaire will also recalculate his now lower fees due and correct the amount due to the impots. 

You do need to see the notaire, in person, as a matter of urgency as the impots will charge interest on amounts incorrectly underpaid. 

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Posted by alfie5 - 4 years ago

Thanks again for who has replyed,Firstly the house was our main residence as we lived in France[we did not own any other house].Secondly the house was not fully renovated as there was about a third to finish when we sold it.I've received a letter from HRMC here in England saying the French want 'Value Added Tax'.When we sold the house we explained to the notire that the house was our main residence because he was going to take capital gains out of the money owed.Now after almost 3 years we get this bomb shell drop on the door mat!!

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Posted by Kanak - 4 years ago

alfie did say VAT.

We have no info whether the house was partially renovated, or whether a sufficient proportion was effected to make the house 'as if it were new', or whether alfie did this as a private, or professional.  Some of these categoies are now defunct, or being phased out, but three years ago VAT could well have been applicable, so will be due.   If the notaire thinks Vat is due, the droits de muation may be lower.  We cannot speculate on any of this, he must ask his notaire.

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Posted by buster-784461 - 4 years ago

Vat was payable on new build & complete renovations up till 2013!

The vat would be qdded to the sale price & sold as ttc - 'tax included'.

The notaire  would then pay the tax out of the house sle money!

This tax ended in 2013.

So it seems as if the notaire didnt do this - didnt know it was a total renovation?

Whether its fair for  impots to demand their share at this stage??

Perhaps speak to the notaire that did the sale for you!

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Posted by LRV24 - 4 years ago

I presumed that you meant CGT not VAT. If it is CGT one thing you have to be careful about is whether it is considered your principal residence. If you own a house in France but only use it for a few short holidays per year while renting elsewhere you may be deemed liable for CGT even though you only own one property.

 

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Posted by suziepops - 4 years ago

Foxie? - what do you think?

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Posted by alfie5 - 4 years ago

I sold my house almost 3 years ago,a renovated property,which was not finished.Now they are after VAT[or TVA].I lived and worked in France for about 4 years and registered.Can they come after this money, if i am due to pay it after all this time.The Notire should have surley picked anything like this up!!!!!.

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Posted by janes-394036 - 4 years ago

Do you really mean VAT or are you talking about Capital Gains Tax? VAT used to be charged if the house was less than five years old but I don't think that is the case anymore. Nothing to do with residency. 

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Posted by alfie5 - 4 years ago

Thanks for your replys..

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Posted by rance-781573 - 4 years ago

You have to actually be a resident and you must have been resident in France for tax continuously for at least two years at any time prior to the sale.