# Inheriting uk property



## RichT (Jan 17, 2019)

Hello everyone,

Last year my father died and subsequently my brothers and I have inherited the house.

The plan is to sell it. Being resident in Spain, how does it work? Will I need to pay CGT?

I believe I'll have to declare my share in the modelo 720 ¿no?

Would be grateful for any advice or recommended professionals to contact.

TTFN


----------



## snikpoh (Nov 19, 2007)

Yes you will have to complete a 720 if your share is over 50k euros. You may have to declare the whole house but mention what your percentage share is (I'm not too sure on this).

Yes you may have to pay CGT


----------



## RichT (Jan 17, 2019)

Many thanks for your speedy and sage advice. I'll try to find a good accountant....


----------



## Alcalaina (Aug 6, 2010)

I was in a similar situation a couple of years ago. You have to declare the inheritance to the Spanish tax authorities within 6 months (see link) and pay inheritance tax if necessary. I got a solicitor to do it for me, cost about €250.

https://www.agenciatributaria.gob.es/AEAT.sede/procedimientoini/G702.shtml

I didn’t have to pay inheritance tax as the value was less than the threshold in Andalucía (now €1 million I believe) but it depends which region you’re in.

I included it (50% share) on my Modelo 720 the following year.

The house hasn’t been sold so CGT hasn’t been an issue for me.


----------



## RichT (Jan 17, 2019)

Thanks for the link and sharing your experiences. Let's see how it pans out here!


----------



## Williams2 (Sep 15, 2013)

RichT said:


> Hello everyone,
> 
> Last year my father died and subsequently my brothers and I have inherited the house.
> 
> ...


Going back to when your father died, I assume you and your brothers filled in your IHT declaration
forms to HMRC within 6 months of death to get UK Probate and that you ( assuming you were
tax resident in Spain during the year your father passed away ? ) declared your share of the
house, that you inherited to the Spanish tax office, using Estate Agents valuations of your fathers
property from the time he died.

As you might or might not know, the IHT nil rate tax band varies from one Autonomous
region of Spain to the other, depending on which region you reside in and of course
your relationship to the deceased with sons and daughters getting the higher rate for
their region - than other members of the family.

This is important as the Spanish Succession tax forms need to be filled in within
6 months of your fathers death - or incur a fine.
Also Modelo 720 detailing your share of the house ( if worth 50k Euros or more )
also needed to be filled in for the period of time you and your brothers shared
the property before its sold.
The value of your fathers house at time of death becomes the purchase price of
the house you and your brothers inherited from your father and therefore CGT is
only realised, if you and your brothers sell your fathers house for more than
its valuation by Estate agents following your fathers death.

So you might not have any CGT to pay at all in the UK or Spain, if your shared UK
property is sold for the same price as the Estate Agents valued your fathers
property last year !!


----------



## Williams2 (Sep 15, 2013)

I should have said the Executor of the Will fills in the IHT forms ( within 6 months ) and obtains Grant
of Probate in the UK, then distributes the assets to the beneficiaries in accordance with the Will.


----------



## RichT (Jan 17, 2019)

Many thanks for the reply and useful information. Sorry it's taken me a while to respond, I work on the ferries in the uk and find it difficult to maintain a full online presence!


----------



## Alcalaina (Aug 6, 2010)

RichT said:


> Many thanks for the reply and useful information. Sorry it's taken me a while to respond, I work on the ferries in the uk and find it difficult to maintain a full online presence!


Thanks for taking the time to respond - you'd be surprised how many people don't bother!


----------

