Inherited uproad property

[dbach]

Hello forum, I'm not sure if this is the right place.
I have inherited a property in Spain. I'm Spanish national, but I live since 9 years in UK, and this will not change.
The inheritance tax I have paid in Spain and now I'm planing to sell the property.
How much tax I have to pay here in UK. It's the only property I own.
Also it's planed to use part of the money to buy a property in UK.
Thank you very much, every advise is very welcomed

[AGoodman]

You would pay 28% capital gains tax on any increase in value since the date of death of the person who left you the property. Tax is paid on this gain after the deduction of the annual exemption (currently £11,300) for the year you sell and any costs of sale such as legal and estate agents fees. You could also get credit for any Spanish tax paid on the sale.

If the property has not increased in value by more than the deductions (or at all) then you will not have any tax to pay in the UK. You may well still need to declare the sale in a tax return.

If the gain is very large then you may be able to claim the remittance basis and avoid any immediate tax but the cost of doing so will be £30,000 and you cannot bring the proceeds to the UK. If you ever bring them here they will be taxed. I suspect this will not be an attractive route.

[dbach]

Thank you very much for your helpful answer.
Sorry I stress this point again. I do not own any other property. This property is empty (has been the home of my parents), never has been rented nor has it been used for business purpose.
I do not live in it, but I live in UK in a rented home.
Wouldn't it be the case, that Private Residence Relief can be applied?

[dbach]

Thank you very much for your helpful answer.
Sorry I stress this point again. I do not own any other properties. This property is empty (has been the home of my parents), never has been rented nor has it been used for business purpose.
I do not live in it, but I live in UK in a rented home.
Wouldn't it be the case, that Private Residence Relief can be applied?

[AGoodman]

No, because it has not been your residence and (as it is in another country) you have not spent 90 days p.a. living in the house.

Both are requirements - under s.222 and s.222B/222C

If you moved into the house and spent 90+ days a year there, you would qualify for each year that you meet the 90 day requirement. This probably won't help you if you are selling now.