# Capital Gains "mais-valias fiscais tax reporting.



## Bicky (Feb 20, 2011)

This is probably a long-shot but will give it a try anyway.
My situation is that I am a U.K. citizen who moved to Portugal in 1992, but have now returned to the U.K. permanently in April 2019.
I am tax resident in Portugal, with all my returns up to date.
When I returned to the U.K., I sold my Portuguese property ( my home ) , the proceeds of which are now in the U.K. At the moment I am renting a property whilst I decide where to put down my roots.
I realise that when I submit my next IRS Declaration, I have to include the sale of my property as a capital gain ( mais-valias fiscais ).
My question is - can anyone guide me on how to complete the appendix, detailing this sale.
I have no U.K accountant who understands this, all my previous returns I have presented myself,and Portuguese contacts are closed.


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## RichardHenshall (Jul 26, 2009)

I wish I could answer your question(s) but I have one comment and some questions in return:

I would wonder if you are correct in stating that you _are_ tax-resident in Portugal. My reading is that you _were _tax-resident in Portugal, so that 2019 will be partly declared to Portugal as a resident and partly as a non-resident (if you need to make any declaration for that part of the year). You might need professional advice on this.

Did you sell the Portuguese property before or after you left Portugal (ie as a resident or a non-resident)?

Do you intend to avail of the option to reinvest the proceeds into a new (first) home in the EU to rollover any gain and thus avoid tax? If so, Brexit might be a factor.


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## Bicky (Feb 20, 2011)

HI Richard, a pity you can't help, but to answer your queries here goes !,
I actually sold my house on 15th March 2019, and moved back to the U.K. on 31st March, so sold as a Portuguese Resident. I also have Residencia Docs valid until June 2020, and an active Portuguese Bank account.
As you know the Portuguese and U.K. tax years have different start/finish dates. So I have my Portuguese 2019 tax submission covering income / expenditure for the period 1st Jan up until 31st March. My U:K. tax submission is from 5th April up until 4th April.
It is my intention to reinvest and do a rollover to avoid tax.
As you say Brexit will be operational in some form or another ???????, so chaos and confusion are on the cards.
My feeling at the moment is to hand the whole package over to the U.K. tax authorities, with the message - you sort it !, Whatever the decision I still have to report my Portuguese income , and include the property sale details on appendix G.
I know that my lawyer plus the land registry will notify the IRS, failure to comply results in a fine !! - (been there before).
any help, advice really welcome - I have an English translation of said appendix - but how to complete is a complete mystery.


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## RichardHenshall (Jul 26, 2009)

https://www.e-konomista.pt/anexo-g-do-irs/ might help with actually completing the Portuguese form.

From what you've said, I don't think you have any reason to say anything to HMRC about your house sale as it wasn't in the UK and neither were you.

You may have residency papers that 'are valid until June 2020' but I would suspect they become invalidated by your leaving the country and becoming resident elsewhere. I assume you have or should report your departure to the authorities in Portugal or you won't be able to make a part year declaration to Portugal.

I believe for your reinvestment to get you relief it has to be in an EU property that becomes your new home. I would assume that a post-Brexit purchase would probably be disallowed, though a transition period may still allow relief. Of course, no-one knows for sure when or if or how Brexit will happen but the Portuguese tax authorities may already have decided how to deal with the various possible outcomes - might be worth asking them directly, especially if the tax bill/saving is significant?


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## Bicky (Feb 20, 2011)

Hi Richard - thanks for your mail - this site provides me with just what I need - translates well too !!
Many thanks , I can proceed now when the time comes !
https://www.e-konomista.pt/anexo-g-do-irs/


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