[Ray21753]

My wife has received a Income Tax bill from Spain for over £8000. She had a 25 per cent part of a property in Spain which (when she got divorced in 2010) she transferred her 25 per cent to her ex-husband for a small fee. Her ex-husband now owns 50 per cent and his two friends 25 per cent each. So why has she received this tax bill for £8000 now, some six years after she transferred her 25 per cent. Also can we see (somehow?!) her account online with the figures etc. as she only has a paper copy here. please help, we are so stressed out about this. my email: rayspiller@aol.com

[Mark Stücklin]

Ray, when you say she transferred her 25% to her ex, did that happen before a Spanish notary, with new deeds (escritura) drawn up reflecting the change of ownership? If not does she at least have a private contract signed by both documenting the agreement and how much money was involved?

Does your wife have any assets in Spain, like another property? If not, she doesn’t have much to worry about because I’ve never heard of a case of the Spanish tax authorities chasing an individual tax bill of this amount back in the UK, and I’ve asked quite a few lawyers. That’s why buyers have to pay 3% of retention to the tax authorities when they buy from a non-resident, because the taxman knows that many will do a runner without paying their capital gains tax, so at least they have 3%, which is better than nothing.

And what do you mean by her “account online”? Her bank account?

I wouldn’t worry about it much, but for peace of mind you might want to consult a Spanish lawyer to look into it.

[Ray21753]

Dear Mark,

Very many thanks for taking the time and trouble to write, it has made us feel a LOT better!  A Spanish Notary WAS involved.

She has NO other property in Spain……on her original ‘bill’ it does mention 3 per cent Rentention.

In the UK we can go into HMRC and look at an account – I wondered if the Spanish Tax had a website where we could tap into and see her tax account figures etc.  We sent last week a package to the Spanish Authorities (it had to be signed for!) and they received it on Wednesday 26 October, but we still have not heard anything from them.

Again many thanks Mark for your help

[Author]

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