# Capital Gains Issue



## mongooselady (Oct 9, 2014)

I will be moving from Portugal after April 5th 2014 and will need to file a Portuguese tax return, including a capital gains section, as we will be selling our house here and buying somewhere in the UK. 
Since that would be a 2015 tax return do I wait to do that until the following year? Also do I have to give up my NIF number when I leave?
How will I prove to the Portuguese Finances that I have reinvested the gains from the house sale?
Can anyone advise?


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## canoeman (Mar 3, 2011)

Are you a registered Resident if the answer is yes then you can rollover CGT into another Primary property within EU/EEA
If your not a registered Resident you can't you have to pay any CGT @ 28% on 100% of any profit less allowable expenses.

Presume you mean your moving April 5th 2015 not 2014? and not being funny but have you actually agreed a sale etc as that will effect seriously the CGT situation, as once you become a UK Resident then you cannot claim rollover CGT relief, if you have then you really need to delay your UK return so when sale happens you are still a Registered Portuguese Resident, yes Financas can and do ask for proof of Residence.

When completing Anexo G then you state purchase, sale, allowable expenses, reinvestment etc and can be asked to produce proof of all items at any time until settled. You should get a good accountant to make certain that re-investment is stated correctly as you will pay CGT pro rata on anything that doesn't add up or outside parameters

If you sold 2014 you'd file return 2015, sold 2015 file 2016 etc, the IRS return cannot be done until the correct filing period is reached for year of sale

You can't cancel your NIF number until all returns filed, agreed and settled, if you move prior to sale then you should change your status from Resident to Non Resident which impacts on CGT


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## mongooselady (Oct 9, 2014)

Thank you so much for your quick and useful reply.
I am a registered resident here and the house sale will be completed at the end of April in 2015 before we leave for the UK. Also the house sale in the UK will only be completed after we have returned to the UK.

My only question now is, if I have to file taxes in 2016 in Portugal can I do this as a UK resident? I would keep my NIF number but once back in the UK I presume I have to give up my Portuguese residency? Or can this be delayed for a further year? If so will that affect my UK residency status?
Maybe it would be possible to file a power of attorney with an accountant here and leave the documentation for them to file for me??

All seems a bit complicated


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## canoeman (Mar 3, 2011)

Residence you should officially cancel here once you leave but not until the Selling Escritura has been done or the cancellation should be to that effect. One of your 1st jobs in UK is registering with a Doctors Surgery as it defines your return to being a UK Resident again.

Equally once Selling Escritura *is done* you change your Status with Financas from Resident to Non Resident with your new UK address and contact details, any post from Financas would then go to UK not Portugal 

If you do not have online access to all your NIF numbers I suggest you do that now, you can at least then monitor what is happening to your NIF's and if leaving to an accountant to do that it is done and correctly

As your completing end April 2015 you would make IRS return online by June 2016 by paper earlier. 

Being a UK Resident then makes no difference you have 2 options
A paper return to your Financas office or online return both of these could be done by you or a Portuguese accountant, you have no need to do a POA for this.

What you really need to do in meantime is to get your paperwork sorted specifically for CGT so everything is to hand
Buying Escritura, only the buying price as stated in Escritura can be used + and inflation co-efficient that depends on year of purchase

Receipts for IMT, IS, Notary, Registration at Conservatoria, Solicitor, Energy Certificate, you might get away with Survey costs, 

Receipts for any Capital expenditure for the 5 years immediately prior to date of selling Escritura

If your selling via a Portuguese Estate Agent they must be *named* in the Selling Escritura to claim Commission as an expense, I don't believe that Financas will accept any NON Registered agents fees

You *cannot* claim a Solicitors fees as an expense when selling and in Portugal you do not need one, it's the buyer that does


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## canoeman (Mar 3, 2011)

For the benefit of others as you are aware of necessity of filing a return.

*Resident or Non Residents* selling property in Portugal *must* make a Tax Return on Anexo G whether they sell at a loss, break even or make a profit, not making a return results in fines and possible penalties

Only property purchased pre 1989 and still in original ownership is exempt from CGT


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