CGT for an Overseas Resident

by **Holmevalley** on Thu Dec 08, 2011 9:46 am

I know a UK citizen who lives in Spain and has Spanish residency. They own several properties in the UK but have not lived in any of them. The rental income from these properties is used to finance their life in Spain.

One property is sold occasionally and then another after what they deem to be a reasonable time period to avoid suspicion.

What is the true CGT implication for such sales?

Thank you.

by **section 44** on Thu Dec 08, 2011 10:12 am

Holmevalley wrote:to avoid suspicion

Suspicion of what, what are they doing?

by **mullet** on Thu Dec 08, 2011 10:36 am

What is the true CGT implication for such sales?

In the UK or in Spain?

by **Holmevalley** on Thu Dec 08, 2011 11:41 am

Thank you for your prompt responses.

Suspicion from the tax man.

CGT in the UK.

by **section 44** on Thu Dec 08, 2011 12:06 pm

A non-resident is not liable to UK CGT.

Holmevalley wrote:Suspicion from the tax man

But of what? i.e. what do they really intend.

The law is clear, a non resident is not liable to CGT and I doubt that the tax man would be suspicious that the law says otherwise although that's not to say that the tax man may not be suspicious that there isn't a gain but rather that there may be a transaction within the scope of tax on income (hence my question).

by **Holmevalley** on Thu Dec 08, 2011 12:24 pm

Neither my friend nor I are experts; hence what may seem to be very basic questions. My friend is concerned that someone wants to drop him in the mire due to a business deal he pulled out of at the last minute.

If there is no liability to CGT in the UK then presumably there is in Spain and hence this is where he should be on the look out.