CGT Allowable expenses on a sale

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This topic contains 12 replies, has 5 voices, and was last updated by Profile photo of Anonymous Anonymous 4 years, 7 months ago.

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  • #56620
    Profile photo of Anonymous
    Anonymous
    Participant

    I suffered on buying with an estate agent who charged me monies for a Reservation Contract an amount the ‘vendors’ were said to have asked for but in fact never did. As I paid this amount foolishly by transfer I have proof that I paid it and a copy of the agents request. Can this money be claimed on a sale as an allowable expense for CGT purposes ?. Or can one only claim the monies paid for the purchase of the property that is recorded by the notary plus plus any money you actually spend on improvements. I am not proposing to sell at the present time but am researching also whether to put it in to a UK limited company to avoid Spanish Inheritence taxes. One can do this with a lawyer or some specialist companies like Winchams and is completely legal.

  • #108381
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    you need an invoice

  • #108383
    Profile photo of Anonymous
    Anonymous
    Participant

    Will a written request from the agent and a bank transfer to the specified bank account suffice? The agent told me subsequently he could not give me a receipt for his commission but I am of a mind to persue this further.

  • #108386
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @Ptr wrote:

    Will a written request from the agent and a bank transfer to the specified bank account suffice? The agent told me subsequently he could not give me a receipt for his commission but I am of a mind to persue this further.

    If he did not give you an invoice, that would be because no VAT has been paid. Keep it simple. You have his details, proof of transfer. Tell him/her you will be delcaring it. He can supply an invoice or explain it to the tax man. Talk to a gestor (conveyancer) about it.

  • #103199
    Profile photo of Anonymous
    Anonymous
    Participant

    specialist company??? don’t make me laugh!!!!!!!! Winch?? you’ll lose more than a finger! ❗ ❗ ❗ ❗ ❗ you’ve been screwed once before…….

  • #103042
    Profile photo of Anonymous
    Anonymous
    Participant

    specialist company??? don’t make me laugh!!!!!!!! Winch?? you’ll lose more than a finger! ❗ ❗ ❗ ❗ ❗ you’ve been screwed once before…….

  • #103023
    Profile photo of Anonymous
    Anonymous
    Participant

    UBEDA. I have been sitting on Winchams quotation for best part of a year!.So I am not surprised with your comment Recently they indicating they were holding their prices for existing quotations and increasing for new ones from 1st April. I am still researching the most economical way of realising the UK company route to avoiding Spanish Inheritence tax. Of course if your beneficiaries agree to keep the property for 10 years and you leave this world fiscally Spanish residente then they have no liability but it asks a lot of them. Further comment appreciated.

  • #103161
    Profile photo of Anonymous
    Anonymous
    Participant

    UBEDA. I have been sitting on Winchams quotation for best part of a year!.So I am not surprised with your comment Recently they indicating they were holding their prices for existing quotations and increasing for new ones from 1st April. I am still researching the most economical way of realising the UK company route to avoiding Spanish Inheritence tax. Of course if your beneficiaries agree to keep the property for 10 years and you leave this world fiscally Spanish residente then they have no liability but it asks a lot of them. Further comment appreciated.

  • #108392
    Profile photo of Anonymous
    Anonymous
    Participant

    Fuengi. Thanks again. But I think in the vast majority of cases a purchaser pays an agent any money it is done in their office -often cash over the table and sometimes a receipt given not an invoice provided. So not to have an invoice would not be unusual I would say. I am giving some thought to this because I am not selling -only anticipating the circumstances I or my beneficiaries would have and trying to do what is required in a timely way. So I think I ought to go back to the lawyer who I went to the Notary with who only handled the completion but knows the agent very well and put the matter to him . This may take a little while as I am back in chilly UK at present but I will write to him in the first instance by post.

  • #108395
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    haha I am an agent aswell

    at the end of the day you have a paper trail. Report it as a cost. If they are unwilling to supply an invoice are you lawyer to send a registered letter requesting the invoice for the charge.

    Your standard property that many average buyers use for a sale or purchase are generally not ideal for reclaiming taxes. They are fine with the laws. etc…. but you will need someone who knows the ins&outs of the tax system. Lawyer tend to overcharge for this service aswell.

  • #108407
    Profile photo of Anonymous
    Anonymous
    Participant

    @Ptr wrote:

    Fuengi. Thanks again. But I think in the vast majority of cases a purchaser pays an agent any money it is done in their office -often cash over the table and sometimes a receipt given not an invoice provided. So not to have an invoice would not be unusual I would say. I am giving some thought to this because I am not selling -only anticipating the circumstances I or my beneficiaries would have and trying to do what is required in a timely way. So I think I ought to go back to the lawyer who I went to the Notary with who only handled the completion but knows the agent very well and put the matter to him . This may take a little while as I am back in chilly UK at present but I will write to him in the first instance by post.

    How often do people do “cash” transactions. I would never even accept it as an agent. It just oozes of being not serious.

  • #108410
    Profile photo of katy
    katy
    Spectator

    @Ptr wrote:

    UBEDA. I have been sitting on Winchams quotation for best part of a year!.So I am not surprised with your comment Recently they indicating they were holding their prices for existing quotations and increasing for new ones from 1st April. I am still researching the most economical way of realising the UK company route to avoiding Spanish Inheritence tax. Of course if your beneficiaries agree to keep the property for 10 years and you leave this world fiscally Spanish residente then they have no liability but it asks a lot of them. Further comment appreciated.

    It comes as no suprise that the majority of these companies coming out with various (costly) schemes are British and haven’t been around very long. A very lucrative business for them, that is why they spam the forums.

    Spanish inheritance tax has been grossly overblown over the last years by a minority with a vested interest in peddling doubtful financial products or else complex holding structures to non-residents at large who, in most cases, are in no real need of them. These “creative” solutions often involve high setting up fees as well as high annual costs that can altogether negate the sought tax mitigation. Besides, you run the risk that if you decide to sell the property later on in life, for whatever reason (i.e. health issues), some purchasers’ lawyers may turn down deals when the property is locked up within a string of holding companies because of the associated legal risks. Naturally these companies can always be wound up, at a prohibitive expense, to sell on the underlying property although it may take some time. And last, albeit not least, is the point on who’s really in control of such corporate structures.

    Belegal.com

  • #108427
    Profile photo of Anonymous
    Anonymous
    Participant

    Appreciate the comment about the costs potentially exceeding the benefit of going down the UK company route to mitigate spanish inheritence tax. Indeed I am looking for a cheaper alternative to Winchams particularly for setting up the company and loading the property. it should not require paying Winchams etc to fill out an annual nil return. I can see that a Spanish buyer might be put off by a UK company but a British purchaser might well value the vehicle already set up to mitigate their own IHT in the future. I think I have overlooked the benefit of INDEXATION in calculating CGT -it seems the property purchase value is annually upgraded or DID THIS STOP IN 2006 please ?

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