Capital gains tax - Page 3

Should be no then

You said in an earlier post that you had been living in Spain for 6 years and residents here for the last 4 years.  I'm not sure if HMRC would regard your UK property as your main residence for all of this period, and definitely not if you have been letting it.  You should at least have a reduction in any CGT payable to take account of the period between when you purchased it and when it ceased to be your main residence.

It's obviously a complicated situation which a UK accountant would be able to advise on, at least for any UK tax liability.

Hi John52,

No.  The basic personal tax allowance in Spain is €5,500 (UK equivalent is £12,500).  However, Spain also has a raft of additional allowances, some of which are age related, so someone of pensionable age would have additional tax-free allowances added to the basic.

Kind regards, 

Kim

Hi CPR2020,

I asked my tax advisor, Abaco Advisers, about CGT in Spain on your UK property sale, in view of you being tax resident in Spain for several years before you sold your UK property:

"Regarding Capital Gains Tax, you will be taxed here in Spain on any Capital Gain made and any tax paid in the United Kingdom will be deducted from any liability here under the Double Taxation treaty"

This concurs with what I'd already told you.

Kind regards,

Kim

Hi, you sold “a” house, was it the family home or do you have another? There is no CGT when you sell your family home. If it was not the family home you are liable for tax on Sale price - Purchase price ( less expenses ).

Are you referring to UK CGT rules? 

The original poster has been tax resident in Spain for 4 years before they sold their UK property last year.

Kind regards, 

Kim

Sorry, I assumed you had sold up in the UK.

This may help.... 

They have sold in the UK, but are tax resident in Spain, so Spanish CGT applies too, in line with the Dual Taxation Agreement between the two countries.

Kind regards, 

Kim

Seeing that it was your only home that you sold and do not own another property you do not need to pay CGT you only pay CGT if you own two properties and sell one of them that's my belief anyway.