Tax on sale of home in UK
Posted: Sun Nov 7, 2021 2:54pm
Does anyone know the rules on any taxes due on sale home of 23years in U.K. whilst a tax resident here in Spain.
Posted: Sun Nov 7, 2021 3:49pm
Helpful member
Hi Locknut,
It may depend upon dates. We sold October 2020 and it wasn't included this year and we were declared as being non-residents (for last year), but now we are liable. There seems to be a 6 month especially end of year period where it doesn't apply.
But if you have been a tax resident for 23 years, yes it will.
I would seek professional advice.
After this point assuming you will be Permanente residents, the tax is noted on total worldly assets, which is just a note, not a tax levy. If that goes up by a certain amount we would be taxed.
Skimpy details, but hope this helps? Not a tax expert, just experience.
D&J
DavenJules wrote on Sun Nov 7, 2021 3:49pm:
Hi Locknut,
It may depend upon dates. We sold October 2020 and it wasn't included this year and we were declared as being non-residents (for last year), but now we are liable. There seems to be a 6 month especially end of year period where it doesn't apply.
Read more...
But if you have been a tax resident for 23 years, yes it will.
I would seek professional advice.
After this point assuming you will be Permanente residents, the tax is noted on total worldly assets, which is just a note, not a tax levy. If that goes up by a certain amount we would be taxed.
Skimpy details, but hope this helps? Not a tax expert, just experience.
D&J
I gained residency 21Dec20 so this is my first tax year, I've not sold my home in London yet was just checking is there capital gains due if I now sell it. The original price paid was £125k in 1998 agent says it's worth £550 to £600k now so that would be a significant gain?
Posted: Sun Nov 7, 2021 4:40pm
Legendary helpful member
Locknut wrote on Sun Nov 7, 2021 4:27pm:
I gained residency 21Dec20 so this is my first tax year, I've not sold my home in London yet was just checking is there capital gains due if I now sell it. The original price paid was £125k in 1998 agent says it's worth £550 to £600k now so that would be a significant gain?
Hi Locknut,
Here are a couple of links that should help:
https://www.gov.uk/capital-gains-tax
https://www.gov.uk/tax-sell-property
It may also be worth checking with HMRC whether this falls under the terms of the Dual Taxation Agreement between the UK and Spain. Since Brexit, I believe your CGT liability will be to the UK, rather than Spain, but you will still have to declare the sale in Spain.
Kind regards,
Kim