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FrançaisHi all. I have just sold my CGH leaseback. I did not have to pay CGT in France. However, when declaring my sale on my UK tax return, I am unsure of what price to declare for my initial purchase of the property. Is it the total price before the French VAT refund? Or is it the price after the VAT refund? My thoughts are that the VAT is associated with the subsequent signing of the commercial lease, rather than the actual sale, so it would be the full price prior to the VAT refund. Has anyone who has sold their leaseback found a definitive answer to this question? Many thanks.
UK Capital Gains Tax after selling leaseback - VAT included?
3 Mai 2025
#1
UK Capital Gains Tax after selling leaseback - VAT included?
We haven't sold our leaseback but we sold a house in France in 1990 and did not have to pay capital gains in France or U.K. despite an increase in value although I think we may have owned it long enough not to be liable but ownership time has changed since.
I would assume you declare the whole purchase price but maybe less the value of the furniture pack? If your leaseback didn't go up in value, it's probably unlikely to attract CGT in U.K. Ours certainly is not holding the purchase value sadly as they were overpriced.
Hope this helps.
Hi the purchase invoice includes VAT and doesnt make any reference to there being a discount subject to leasing through a prescribed holiday let scheme for 20 years. The VAT discount was given as an incentive to enter into a commercial lease to promote tourism in the area, somethimg which happened subsequent to the acquisition of the prperty. Price for CGT purposes is in my view the price including VAT.
Just out of interest which company did you use to sell through as im looking at doing that myself.
thanks