# CGT Query



## Rabbitcat (Aug 31, 2014)

Ok I do not wish re run the previous debate re CGT payable in Spain on sale of UK house if you move to Spain in same year you become tax resident- we did that one to death and it was generally accepted, you must avoid becoming tax res in same year you sell

What I DO actually want to ask about is something else I have read on this issue

I have read that if you sell up in UK and then fully invest all of that by buying a property in Spain you will NOT be liable for CGT there?

Have I read this wrong ( bet I have!!!!)

Thanks folks

Capital Gains Tax - Sale of UK Property - Citizens Advice Bureau Spain


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## Williams2 (Sep 15, 2013)

Rabbitcat said:


> Ok I do not wish re run the previous debate re CGT payable in Spain on sale of UK house if you move to Spain in same year you become tax resident- we did that one to death and it was generally accepted, you must avoid becoming tax res in same year you sell
> 
> What I DO actually want to ask about is something else I have read on this issue
> 
> ...


Re: I have read that if you sell up in UK and then fully invest all of that by buying a property in Spain you will NOT be liable for CGT there?


My Gestor says - this isn't possible anymore.


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## Rabbitcat (Aug 31, 2014)

He could well be right. It was just that the article I linked is quite recent but things do change. Was worth a try!!!

( I have written to them asking is this still current- will post any reply)


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## snikpoh (Nov 19, 2007)

Williams2 said:


> Re: I have read that if you sell up in UK and then fully invest all of that by buying a property in Spain you will NOT be liable for CGT there?
> 
> 
> My Gestor says - this isn't possible anymore.


I think your gestor may well be wrong.

I think it is still possible but you can not sell the new home for a number of years.

I'll ask for a definitive answer and then post it here.


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## Rabbitcat (Aug 31, 2014)

I appreciate that snikpoh

We did the previous "CGT tax due" debate to death and I don't wanna exhume all that again but this query should be more of a yes/no definitive answer.


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## sansylivin (Sep 16, 2013)

Yes its true. We´ve just done this- sold the house in UK after 2 years here and reinvested a year later here (full amount). Has to go through hacienda as part of la renta and we used gestor to do so but well worth the E80 to not pay any CGT!


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## snikpoh (Nov 19, 2007)

Williams2 said:


> Re: I have read that if you sell up in UK and then fully invest all of that by buying a property in Spain you will NOT be liable for CGT there?
> 
> 
> My Gestor says - this isn't possible anymore.


... there you go.

Time to find a decent gestor I think!


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## Rabbitcat (Aug 31, 2014)

sansylivin 

Do you have to pay the CGT and then claim it back or were you able to do it all on tax forms without paying CGT?


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## sansylivin (Sep 16, 2013)

Rabbitcat said:


> sansylivin
> 
> Do you have to pay the CGT and then claim it back or were you able to do it all on tax forms without paying CGT?


Nothing to pay just like the UK as it remains your primary residence. We declared the sale last year in la renta with the promise to buy something soon and declared the purchase of spanish house in this years renta. All done by the gestor without pain. As with the UK there is a 3 year deadline from when you stop living in your primary (UK) residance otherwise you can become liable. One caveat is that we live in Gipuzkoa (seperate hacienda) although I´ve been told its the same in rest of Spain.


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## Rabbitcat (Aug 31, 2014)

Ha ha- I have mixed our lines of communication by also messaging you. Thanks very much for your help

Just to be clear is it the cash remaining from the sale of your UK house we are talking about ( sale price less mortgage) or is it total selling price with no allowance for deducting the mortgage? Thanks again


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## Chopera (Apr 22, 2013)

sansylivin said:


> Nothing to pay just like the UK as it remains your primary residence. We declared the sale last year in la renta with the promise to buy something soon and declared the purchase of spanish house in this years renta. All done by the gestor without pain. *As with the UK there is a 3 year deadline from when you stop living in your primary (UK) residance otherwise you can become liable.* One caveat is that we live in Gipuzkoa (seperate hacienda) although I´ve been told its the same in rest of Spain.


This is a new one on me. I thought that in the UK your primary residence was not subject to CGT, end of. Has this changed recently?


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## sansylivin (Sep 16, 2013)

Rabbitcat said:


> Ha ha- I have mixed our lines of communication by also messaging you. Thanks very much for your help
> 
> Just to be clear is it the cash remaining from the sale of your UK house we are talking about ( sale price less mortgage) or is it total selling price with no allowance for deducting the mortgage? Thanks again


The CGT is a tax on the profit so if you buy for 50K and sell for 150K then the profit is 100K. The mortgage you took out on the property is irrelevant, lots of people remortgage their property during their ownership and lots of people don´t have a mortgage at all (so I told). Hope that makes sense?


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## Rabbitcat (Aug 31, 2014)

That's very helpful - off the top off my head I cannot think how I would show the price we paid for it, but I am sure there must be some way!!

You're very helpful and it is appreciated


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## Rabbitcat (Aug 31, 2014)

Well since I got ribbed today for seeking info from another forum I will stick with this great institution for another quick query.

As far as I have gathered , including from contributions on this thread ( thanks folks) CGT can be offset through rollover if the gain from the sale is reinvested in another property within 2 years. I get that bit

What I am wondering is- do I have to sell UK HOUSE FIRST or can I purchase a Spanish property then within 2 years sell my UK house and offset the CGT I would owe in Spain?


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## Lolito (Aug 25, 2012)

I am paying my CGT in Spain on Tuesday 30th June as everybody else. 

I sold my property in UK last year, and although I also bought a house here (with the profit) a few months later, I still had to pay CGT as my London home wasn't my main residence as I was a resident in Spain and I was renting out my property for the last 3 years. 

CGT is paid in Spain as I am a fiscal resident here. I thought I'd have to pay lots but in the end with lots of discounts, is nearing 10k euros. Hacienda knows everything, no point trying to beat them. You won't.


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## Rabbitcat (Aug 31, 2014)

Thanks for that. My situ is different.

I have my main and only home in UK. Am resident in UK. My plan is to buy a house in Spain and then sell UK house and move out there.

My query was if I did all this in the same year as becoming tax resident in Spain could I offset the CGT which would be owed in Spain on sale of my UK home against my Spanish purchase. My enquiries so far would suggest this is ok to do


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## Lolito (Aug 25, 2012)

Can't help you there, Hacienda changes the rules every other day, so it is difficult to keep us, even our Gestor was having trouble with it. 

if you sell next year, the declaracion would be for 2017... lots of things change every year. We could 'desgravar' next year, for the buying of our house this year... but we can't do that anymore, it would have been a good chunk of money.


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