Main residence in UK was purchased in 1986,lived in til 2013 then rented since then whilst we moved to reside in Spain in former holiday flat.UK property not declared to Spanish tax office under form 720 as acquisition value at purchase was less than 50,000 euros(£40,000)in 1986.Rental from uk property declared to Spanish tax authorities as well as uk pensions.
Now wish to sell UK property which has value of £250,000.Gain would be approx £210,000 over 33 years,7 years of which was rented.Property in uk jointly owned.
1.In view of the loss of reliefs in April 2020 what CGT would We need to pay to UK tax and or Spanish Tax authorities?
2.If Tax needs to be paid to Spanish tax office can we avoid this by returning to UK,taking up UK fiscal residency again.If so how long do we have to establish fiscal residency in UK at our main residency again before we can sell the UK property avoiding having to pay Spanish tax office any CGT?
3.Dilemma for us is Brexit and loss of our Spanish residency in order to avoid large CGT to Spanish tax office.We would then have to return to Spain after sale of UK property and reapply for residency although I understand that we may be allowed to retain our residency in Spain after Brexit for up to 3 years out of Spain however not sure how this applies to fiscal residency.Any advice or suggestions would be appreciated.
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