CGT in Spain

[Windo]

My brother is resident in Spain and does not pay tax in the UK -- hasn't done for 20 years. My mother died in the UK recently, and although IHT was paid, there was still a capital gain when her house was sold. If he brings the money into Spain will he have to pay tax on the capital gain there?

[pawncob]

There is Spanish CGT due on the sale whether he imports the funds to Spain or not.

[Windo]

Thanks for that.
You mean, he has to pay CGT in Spain even thought the funds were originated and stayed in the UK, in Sterling?

Do you happen to know what the rate of CGT is Spain is?

Thanks in advance

[pawncob]

http://www.getspain.net/cgt_177043.html

[Windo]

Thanks for that. It's very helpful. But it does say "when you sell a Spanish property".
Does that apply if he sells a British property?

[Peter D]

Has the estate sold the house or was the property transferred to you two brothers then you sold it. How much was the gain. Regards Peter

[Windo]

IHT was paid in full. The house was sold a while after and had increased in value after the IHT valuation. The total capital gain was £300,000, split four ways (we have two sisters too) among the beneficiaries. So, his share is £75,000.

[Windo]

forgot to say. We sold the house as executors of our mother' estate, but we have been advised that each of us can pay CGT as individuals.

[pawncob]

If the Execs sold the house, they're liable for the CGT.
The gain would only accrue to you as individuals if it was distributed in specie and then sold.
(it must be some time since the death if there's a £300k gain)

[Windo]

That's a biggie, and I will have to consult on that.

Nonetheless, if, for the sake of argument, my brother did get a £75k capital gain individually would the Spanish authorities treat it as if he had got a capital gain from a Spanish property? I should point out that this was the childhood home, so he did not pay for any part of it originally.