Selling UK Property? The Tax Advice you Need to Know

UK home sales require expat tax compliance.

House rules. For France-based British expats selling a UK property, adhering to capital gains tax obligations is key for compliance and avoiding penalties.

Tax facts. Under the France-UK Double Taxation Agreement (DTA), the UK has the primary right to tax capital gains on its properties. The rate is 18-28% for residential, dependent on income, while commercial is 10-20%. Once sold, you report the gain and pay the tax in the UK within 60 days.

Next steps. As a French tax resident you must declare the capital gain in France, even if no additional tax is due. Include gain details in the annual tax return online, Form 2047 (the following April) and French CERFA Form 2042-C, in box 3VZ. 

Fast figures. France’s tax authorities will issue an equivalent tax credit to prevent double taxation. So if a French tax resident sells their UK house with a £100,000 gain, they would pay £20,000 in capital gains tax to HMRC, declare in France and receive a tax credit for £20,000.