Couple face ruin after £20k tax bill from France

French officials say they owe more than 20,000 in tax and now the British tax man is pursuing the money.

Win and Mike Wakeling say they have become the victims of a "malicious" and "discriminatory" witch hunt after disgruntled French officials vowed to "make an example" of them, citing the large numbers of British with "all their money" treating France like a playground.

The couple, from Helensburgh, retired to the Dordogne region ten years ago to renovate an old farmhouse, making clear to the authorities that it was their principal residence and not a second home. But after selling the home they have now been hit with a capital gains tax of more than 20,000.

The couple warn that they will be financially ruined if the authorities reclaim the money and Mrs Wakeling, 74, has developed health problems as a result of the five-year dispute.

Her husband said: "We are honest people who have worked all our lives, and we have never experienced such treatment."

The couple have now appealed for help from the Scottish Government to intervene on their behalf. Jackie Baillie, the couple's local MSP, said: "It does seem genuinely unfair that a couple who have worked all their lives can be treated in this way."

The couple's ordeal began after they relocated to France in 2000. Having sold their home in Britain, they fell in love with the region in the south-west of the country.

They bought an old farmhouse in Saint Laurent des Hommes for 135,000, and set about ensuring their paperwork was in order, which included making plain to the authorities that their property was not a holiday home.

However, by 2002 the repairs and renovation work required to bring their new home up to scratch was too great, and they sold the property in April of that year, making a profit of 36,777 (30,604)

The Francophiles moved to a smaller house in Normandy, thinking it would be their final move as they prepared to enjoy their retirement. However, in autumn 2005, they received a letter from officials in Dordogne demanding a capital gains tax payment of 12,258. When they pointed out they were domiciled in the country and appealed the bill, they were told without explanation that it was being doubled to 24,516.

"It was a shocking response," Mr Wakeling, 61, recalled. "They said we owed this money as it was our second home."

Despite presenting their bank statements and rates bills, and securing the support of a notaire, the authorities remained unconvinced.

Mr Wakeling continued: "As a last resort, a French friend telephoned the tax office in Ribrac. She was given no help or explanation except some rather disparaging remarks about the British and their money.

"The official told her they were sick of British people with all their money coming to France and not toeing the line, even though we were doing that. She also said she was happy to make an example of us."

The Wakelings decided to return home and are renting a property in Rhu, near Helensburgh.

On their return, however, they found the baton had been picked up by British authorities, who repeated the demands of the French officials, as part of an international agreement.

HM Revenue & Customs said it was unable to intervene in the stand-off as "the debt involved is a French debt.