# flat sale transfer fund to UK?



## leoninukfr (Apr 27, 2017)

dear all

I'm planning to sell a flat in France and bring the money back to UK to purchase a property here.

1- is the money transferred from France subjet to a HRMC tax (income from oversea?)
2-any contstains about the transfer itself (max , limit, declaration trac fin)

again this is from my personal account in France to my personnal account in UK

thank you very much for your help...
regards
Leo


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## nyclon (Apr 3, 2011)

I've transferred this to the tax forum where you should get more help.


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## Bevdeforges (Nov 16, 2007)

Very generally speaking, any taxes related to property transactions usually are payable in the country where the property is located. So, on selling your flat in France, you will have to settle up any taxes due there (probably as part of the sale). 

Once the proceeds from the sale have been banked, they transfer of the funds is only a transfer of capital, so should not be subject to taxation. (Though your residence status may come into play here.) Assuming you are currently resident in the UK, you should be able to transfer the money from your bank in France to your bank in the UK. You may well be required to tell your bank in the UK the source of the funds, but that should be it.
Cheers,
Bev


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## leoninukfr (Apr 27, 2017)

Bevdeforges said:


> Very generally speaking, any taxes related to property transactions usually are payable in the country where the property is located. So, on selling your flat in France, you will have to settle up any taxes due there (probably as part of the sale).
> 
> Once the proceeds from the sale have been banked, they transfer of the funds is only a transfer of capital, so should not be subject to taxation. (Though your residence status may come into play here.) Assuming you are currently resident in the UK, you should be able to transfer the money from your bank in France to your bank in the UK. You may well be required to tell your bank in the UK the source of the funds, but that should be it.
> Cheers,
> Bev


Hi Bev,

Thanks for taking the time to look at my question , strangely all tax advisors that I have contacted so far seems to indicate that it should be treated as a Capital gain tax as this property was not my main residence (main residence has been in UK for last 8 years).
I'm now quite lost but as I do not want to make a wrong tax declaration/statement I will investigate the CGT (28% ! of the capital gain, minus tax relief 11k etc...).
I wonder if you could provide add links to follow you origfinal analysis so I could share them with the tax advisor that I will soon hire to help me.

thank you again
Lio


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## iota2014 (Jul 30, 2015)

Google is your friend - much cheaper than paying tax advisors. 

https://www.google.co.uk/search?q=h...erty&ie=UTF-8&oe=UTF-8&hl=en-gb&client=safari


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## JustLurking (Mar 25, 2015)

leoninukfr said:


> ... it should be treated as a Capital gain tax as this property was not my main residence (main residence has been in UK for last 8 years).


That would be how I would expect this to resolve, too. Any _increase in value_ of your flat between purchase and sale is a capital gain, and probably(*) taxable to the UK. The act of _transferring the cash_ to the UK isn't additionally taxable, though.

Anything you have to pay to France on the same gain should be creditable against your UK tax here, up to a maximum of the UK rate on capital gains. You'll need to pay close attention to the GBP/EUR forex rates here when computing the actual gain. If the flat was your main residence for any period you may be able to exclude or other factor out some of that period from the overall gain computation.

(*) There are UK 'non-dom' rules that sometimes mean that money made outside the UK and _not_ brought into the UK is not UK taxable. These only last for a limited period though -- there's a cut-off at 7 years that you probably fall outside -- and not everyone can take advantage of them anyway. And the UK govt chips away at them every chance it gets, as well.


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## Bevdeforges (Nov 16, 2007)

Like Just Lurking said, there are two separate transactions here. Yes, the capital gain on the sale of the property is taxable in France, and at the very least reportable (as part of your worldwide income) in the UK. But there should be some sort of tax credit available based on taxed paid in France.

The transfer of the proceeds is a simple transfer of capital, though, and should not be subject to tax. (Expect some fees related to the transfer, but those are bank fees and possible exchange fees.)
Cheers,
Bev


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