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CGT – Reduction for improvements?

Posted by MrGrumps - Created: 4 years ago
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6 replies (Showing replies: 1 to 6)

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Posted by cilleanna - 4 years ago

Have just discovered that as a non resident that it is necessary to have a third party financial "expert" to verify the notaire's calculations of CGT. These are usually 1% of the total cost. Therefore I now have my explanation as to why we paid €5,000 as a fee to have the CGT verified on top of paying CGT. We are about to sell again with little CGT to pay (we believe) and will be finding out if the fee is still 1% for the financial verifier even if the CGT works out at less than their fee. All very subtle. There are rarely "gains" in the South of France by the time the agencies take their cut and the government takes their cut and little fees whittle it all away.

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Posted by laughingboy-409220 - 4 years ago

If you have an invoice from a registered artisan showing his siret number and the work carried out, that's what counts. If different categories of artisan want to bicker amongst themselves, that's not the customer's problem.

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Posted by MrGrumps - 4 years ago

Thanks for the helpful replies. I did suspect that DIY would not count.

It’s interesting that you specify ‘artisans’ and I wonder whether this includes the so-called ‘micro-entreprises’. I remember there was a lot of fuss a few months back because the former were complaining that they had greater overheads and were consequently being undercut.

Anyway, it all seems quite a performance and, on balance, I think I’ll just get on with it and forget trying to claim back.

MG

 

 

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Posted by laughingboy-409220 - 4 years ago

Yes I believe that if the plus value is over a certain amount, by law the calculations always have to be submitted by a third party, which of course you pay for. But look on the bright side - if you're paying CGT at all, it means you've sold your holiday home and made some sort of profit. Many will envy you!

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Posted by cilleanna - 4 years ago

Laughing boy Brittany has got it pretty well spot on!! We bought a house, did a lot to it because the promoter ran off before finishing it. We had all of the invoices over the 5 years we had it from professional artisans - BUT - the notaire took the price we paid for it originally, subtracted it from the price we sold it and said that with some adjustments for the years we had it, cost of living increases etc. we needed to pay CGT on the difference. He said that if we chose to contest it that he would have to take the amount up front and only after us proving what we had spent would we either get a reimbursement of what we had paid - or the impot would look for more. Defeated - we agreed. Then because the amount was perhaps too large for him to authorise - we had to pay €5,000 for a bank to agree his sums - and then we paid CGT. So I wouldn't hold out much hope.

 

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Posted by laughingboy-409220 - 4 years ago

No - you can only claim actual costs against invoices for work that has been carried out and invoiced for by a registered French artisan. DIY doesn't count.

However if you have not had work done by artisans I believe that there is a fixed allowance against CGT that you can claim anyway, without having produce receipts or anything. 

And let's face it, the rules and regulations seem to be written in sand - it might all be different by the time you come to sell.