Relief on French Tax Deposit?

Relief on French Tax Deposit?

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Client (UK tax resident and always have been) sold French property (never been PPR) in 2014.  Some French CGT paid in May 2014 with large deposit set aside in case French tax authorities do not accept calculations and further tax then due, otherwise this will be repaid in May 2018.  2014 SATR will include French property gain and UK CGT will be due as no set off for deposit as it has not been used to settle French CGT.  Say it is used to settle French tax in May 2018, the timelimit for over payment relief has past.  How does client get relief?  

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By Expat24
25th Aug 2014 23:08

There is immediate relief

for the French capital gains tax actually paid (which has to be paid over with form 2048-IMM within 2 months of the sale).

The holding  of  additional funds is a precautionary withholding; if the facts of the disposal/gain ie base cost, holding period etc are not contentious, then unlikely to be any further CGT to pay as the correct amount will already have been paid over in 2014.  The funds would then be repaid to your client in full.

I think you are worrying unnecessarily.

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