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Foreign CGT

No obvious record of Foreign CGT payment

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Client sold a property in France in 2011. HMRC have enquired re the CGT position. Net proceeeds after deduction of French CGT have been received by our client. Problem is our client cannot obtain confirmation that the French CGT has been paid. I intend to show credit on CGT computation but am concerned it may be disallowed by HMRC in the absense of proof.Any suggestions

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By ireallyshouldknowthisbut
01st Nov 2017 11:17

You client needs to try harder they are under tax investigation.

There must have been documentation

if its France there will be a battery of paperwork with various seals on it. Lets face it your client has binned it or been too lazy to find it. Ask them for copies if they have binned it.

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By Accountant A
01st Nov 2017 11:19

You are rightly concerned. Is French CGT assessed and collected in a manner similar to the UK? Has the French lawyer who (presumably) handled the sale been approached?

You say "Net proceeeds after deduction of French CGT have been received by our client." and "I intend to show credit on CGT computation". That suggests that you do have some evidence of tax paid. What is that evidence?

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By Chris Smail
01st Nov 2017 13:17

The French CGT is paid over by the lawyer dealing with the sale, ask your client to contact them (or give you authority to do so) and get a full statement of account from them. If possible do the same for the purchase, especially if deposits were paid a long time in advance of purchase.

Revalue every transaction (buying, improving & selling) into GPB at the correct daily rate and, hey presto, create an entirely unexpected gain in GBP for your client to pay tax on.

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By Expat24
06th Nov 2017 09:44

The notaire handling the sale should have completed a form 2048-IMM detailing the full tax calculation. Back in those days, your client may not have paid any French CGT as the holding period for total exemption was only 15 years.
The notaire should be able to provide a copy of the 2048-IMM.

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