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Where Taxpayers and Advisers Meet

property sold in Spain

Joined:Sun Jan 14, 2018 9:25 pm
property sold in Spain

Postby dbach » Wed Jan 19, 2022 3:00 pm

2020 I sold a property which I inherited before I have arrived and became resident in UK. I'm self-employed and resident since 2009 in UK
In 2016 the property value was newly set to 260000. After all expenses deducted and before tax the property was sold for 395000.
Plus Valia and the 3% retention as not being a Spanish resident anymore was paid in Spain.
Do I have to make a separate declaration of capital gain in UK, and if - how do I declare the amount of tax already paid in Spain?
Thanks a lot in advance

Joined:Fri May 16, 2014 3:47 pm

Re: property sold in Spain

Postby AGoodman » Thu Jan 20, 2022 11:29 am

Yes, you will have to declare the sale. In fact, if you sold between 6 April 2020 and 5 April 2021, you should be filing your return and paying any tax by 31 January 2022 (i.e. in 10 days' time). Fortunately HMRC are allowing an extra 28 days this year so you just need to file and pay (possibly with a little interest) by 28 Feb.

You will need to claim credit for the Spanish tax on your UK tax return.

"In 2016 the property value was newly set to 260000" - You do not explain how this happened but you need to be sure that the "reset" applied for UK tax (not just Spanish tax) as the usual UK position is to use the market value at the date of death of the person you inherited from.

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