# Capital Gains Tax



## Helenameva (Aug 15, 2014)

I know this has been done to death but I can't get my head round Capital Gains Tax to suit my personal situation. 

I have always been a UK tax paying resident up until June / July this year when I sold my house and moved to Spain (house sale exchanged contracts end of June and completion mid July). House sold for a good deal more than we paid for it 8 years ago, not just through natural inflation but also because I did a lot of work on it. We are now living in my wife's old family house, we haven't bought it, just renting on an informal basis. I don't intend working or becoming tax liable in Spain until January next year.

Could some kind soul take a few minutes to explain if there are any tax liabilities on the house sale if I don't become liable to pay tax in Spain this year? What about in the UK? (I was working self employed in the UK up until June so I am tax liable from April to June, does that mean I have to pay CGT in the UK instead / as well?)

Thanks in advance.


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## CapnBilly (Jun 7, 2011)

As long as you don't become tax resident in Spain this year, which if you moved mid July you won't, then there is no capital gains tax liability in Spain. Assuming it was your main home in the UK, then there is no capital gains liability there either.

Even if you were tax resident in Spain, if you reinvested all the proceeds in a new home within 2 years of selling, you would get rollover relief in Spain. If you only invested 80% then capital gains would be payable on 20%. You would have to report it on your tax return for 2014, and tick the requisite box to say you intend to reinvest, so it would be deferred until you bought a property.


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## Helenameva (Aug 15, 2014)

Thanks for your comprehensive reply CapnBilly. I actually came over mid June, so by the end of December I will have been here 198 days. I guess that means I will be tax resident, unless I reduce my time here below the 183 days threshold. I'm not sure I want to / will be be able to reinvest all the proceeds in a new home here within 2 years of selling.

Does this all sound correct? Does the fact I am now on el Padron have any relevance? I haven't yet claimed residency at the police station or registered for utilities and the like.

Thanks again.


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## xabiaxica (Jun 23, 2009)

Helenameva said:


> Thanks for your comprehensive reply CapnBilly. I actually came over mid June, so by the end of December I will have been here 198 days. I guess that means I will be tax resident, unless I reduce my time here below the 183 days threshold. I'm not sure I want to / will be be able to reinvest all the proceeds in a new home here within 2 years of selling.
> 
> Does this all sound correct? Does the fact I am now on el Padron have any relevance? I haven't yet claimed residency at the police station or registered for utilities and the like.
> 
> Thanks again.


when you register on the padrón you have declared that you are resident


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## Helenameva (Aug 15, 2014)

xabiachica said:


> when you register on the padrón you have declared that you are resident


Xabiachica, thanks for the clarification. So there's no point in digging out the long trousers for a trip to the UK then!

I'm so glad I found this forum. I hope to be able to help others as well as sucking everybody else's knowledge dry!


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## snikpoh (Nov 19, 2007)

Helenameva said:


> Xabiachica, thanks for the clarification. So there's no point in digging out the long trousers for a trip to the UK then!
> 
> I'm so glad I found this forum. I hope to be able to help others as well as sucking everybody else's knowledge dry!




Being on the padron means you are resident but NOT necessarily TAX RESIDENT.


If I were in your situation, I would go back to UK for a couple of weeks to stay under the 182/183 day rule.


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## xabiaxica (Jun 23, 2009)

snikpoh said:


> Being on the padron means you are resident but NOT necessarily TAX RESIDENT.
> 
> 
> If I were in your situation, I would go back to UK for a couple of weeks to stay under the 182/183 day rule.



hacienda has access to padrón records & takes advantage of that fact

you don't register on the padrón unless you are habitually resident in a town - & that means that you spend the majority of the year - ie more than 6 months a year (which is also what makes you tax resident)- in the town

having declared themselves as resident, going on holiday doesn't change that


hacienda _might_ not query it if they didn't declare for tax - but if they did, they would use the padrón registration date as proof


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## el pescador (Mar 14, 2013)

Anyone deal in shares a lot on here?
Ive done a bit of research and kind of understand the share side of things but need clarification as to the 2 types of tax to be paid...also not sure on divis which has 10% taken from source by my broker...


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## xabiaxica (Jun 23, 2009)

the padrón discussion is now here http://www.expatforum.com/expats/spain-expat-forum-expats-living-spain/530930-padr-n.html


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## Helenameva (Aug 15, 2014)

xabiachica said:


> hacienda has access to padrón records & takes advantage of that fact
> 
> you don't register on the padrón unless you are habitually resident in a town - & that means that you spend the majority of the year - ie more than 6 months a year (which is also what makes you tax resident)- in the town
> 
> ...


I registered on the padron mid to late July (so that I could open a bank account, which is still pending BTW!) so if that is the date they will work from then I will be here less than 183 days. Do you think this a reasonable stance?


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## xabiaxica (Jun 23, 2009)

Helenameva said:


> I registered on the padron mid to late July (so that I could open a bank account, which is still pending BTW!) so if that is the date they will work from then I will be here less than 183 days. Do you think this a reasonable stance?


you don't need to register on the padrón to open a bank account 

but yes, I'd say that's perfectly reasonable


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## Helenameva (Aug 15, 2014)

Phew! Glad you agree! I have set up an appointment with an advisor, I'll let you know if there is anything further he advises.

Re: Bank account, I hear what you are saying. My problem, I think, is that I'm living in a rural area not used to foreigners, so the advice and requirements isn't always correct. Fortunately it isn't a problem I need to get resolved quickly! Manana is soon enough.


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