Capital gains on self-built house

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v12mike
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Capital gains on self-built house

Post by v12mike » Wed Jun 06, 2018 3:37 pm

How is the PV calculated on a "self-built" house? In the case I have in mind, the house was built several years ago, with various subcontractors employed by the owner, starting with bare land. Is the nominal purchase price just the price of the land, or the price of the land plus the materials and subcontractors bills?

parsnips
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Re: Capital gains on self-built house

Post by parsnips » Sun Jun 10, 2018 12:21 pm

Hi,
The deductible cost is the land , plus building expenses invoiced by registered (in France) tradesmen*. Also notaire's fees paid in purchasing the land and any notaire'sfees paid as part of the sale (or a fixed allowance of 7.5% of the sale price) .
* If none , a fixed 15% allowance.

vic evans
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Re: Capital gains on self-built house

Post by vic evans » Sun Jun 10, 2018 1:35 pm

Does this apply to an owner/occupier?
It's not stated but presumably, in this case,the owner does not live in the house & it's not therefor the principal residence.

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mysty
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Re: Capital gains on self-built house

Post by mysty » Sun Jun 10, 2018 3:31 pm

vic evans wrote:
Sun Jun 10, 2018 1:35 pm
Does this apply to an owner/occupier?
It's not stated but presumably, in this case,the owner does not live in the house & it's not therefor the principal residence.
If it's your home and you live in it it's a tax free sale. Principal residence.
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Le Démerdeur
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Re: Capital gains on self-built house

Post by Le Démerdeur » Sun Jun 10, 2018 3:59 pm

And I believe that currently the CGT rules for foreign non resident or non occupant owners are more favorable for non EU citizens and hence probably will be a rare bonus post Brexit.

please correct me if I have got the above wrong.

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Re: Capital gains on self-built house

Post by v12mike » Wed Jun 13, 2018 8:39 am

Chancer wrote:
Sun Jun 10, 2018 3:59 pm
And I believe that currently the CGT rules for foreign non resident or non occupant owners are more favorable for non EU citizens and hence probably will be a rare bonus post Brexit.

please correct me if I have got the above wrong.
I think that the CGT status of British real estate will not change with Brexit, as it is governed by the tax treaty, which (like most tax matters) is nothing to do with the EU.

Thanks for the answers BTW.

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