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CGT for NOn UK residents

CGT for NOn UK residents

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I am preparing the 2014/2015 self assessment.

My client has just informed me that he became non resident 5.4.2014, so for 2014/2015 he is a non UK resident.  He has resided in Spain for several years now, with family and children all going to a spanish school.  He remained a UK resident purely because his work was with a UK employer and his total days to UK per     annum automatically qualified him as a UK resident.   Now his employment has ceased August 2014 and he only spent a total of 30 days in the UK,  half of which were workdays he is no longer a UK resident and would be deemed a spanish resident

I am aware that he does not need to report any capital gains on shares  disposed of in UK companies, unless he return within five years of leaving.  This will be reported in Spain.  (their CGT rates are higher, but he is aware of this)

However i am not clear on the best advice regarding the disposal of a residential property - once his main residence - As this disposal was before 6.4.2015 it does not need to be reported.  It was the main residence for the bulk of ownership, but was let out for approx 5 years to 31.3.2014, it was then empty until sold October 2014.  As a UK resident, he would apply the PPR and the Letting relief, which would wipe out any capital gain, so no reporting required.

However if he is claiming non residency for 2014/2015- does he have to report the disposal in Spain and if so, would he be worse off as he looses his PPR and Letting relief?

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By Expat24
17th Feb 2016 12:18

Ask a Spanish tax adviser!

If he is NR in the UK in 2014/15, when the sale took place, there is no chargeable UK disposal - end of story!  You can't pick and choose which jurisdiction is going to tax it, based on the best result!

Spain does not normally recognise "split" tax years so he may not be resident in Spain in 2014 but you don't say when the sale took place ie in 2014 or 2015 calendar year?  The presence of his wife and children in Spain may also have made him resident in Spain at an earlier point - you really can only get the answers from a Spanish adviser.

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