November 15, 2006 at 5:15 pm #52450
Hi, I´ve read the various threads about the reduction in CGT from 35% to 18% but my Spanish lawyer is doubting that all is in place for it to actually apply from the 1st Jan.07, does anyone have any more news ? Willem
November 17, 2006 at 12:27 pm #67403
As I have said before, this reduction will be effective as of 01/01/07. The law has been passed by Congress and then ratified by the Senate, and on the document issued by the Senate it also confirms that this will come into force 1 Jan. Just needs to come out in the BOE, which will happen any day now.
November 27, 2006 at 2:04 pm #67519
Do remember, of course, that you will probably have to pay UK CGT as well if you are UK domiciled. You can offset any spanish tax against this.
Top rate of UK CGT tax is 40% so you may not be much better off.
However, as UK Capital gains tax free allowances are more generous, AND you are allowed more deductions AND taper relief applies AND you only pay the tax at your highest marginal rate (10%, 22% or 40%) you will “probably” be better off.
Do not consider not declaring the sale to the UK IR. For an amount the size of an average house it will be considered fraud and you will be lucky to escape with fines and interest charges, alone. Remember Ken Dodd being banged up for lesser amounts owing.
UK IR consider foreign owners to be financially and tax literate and will prosecute without hesitation.
November 27, 2006 at 6:35 pm #67532
Hi, and thank you for your reply. I am the buyer and just wondering if the seller will try to delay to take advantage of the CGT change if it does indeed happen on Jan 1st. Regards Willem
November 27, 2006 at 8:01 pm #67533
Remember Ken Dodd being banged up for lesser amounts owing.
I do not personally think that anybody who posts a comment like that, which is factually incorrect as far as I know, would have any other piece of advice taken seriously.
The man from Knotty Ash surely deserves an apology from the Ashtondave
November 27, 2006 at 8:20 pm #67534
Is this tax dodger (allegedly!!) still alive?
November 28, 2006 at 4:47 pm #67543
😳 Oops. Of course. I must have had too many glasses of wine. I meant Lester Piggot of course.
The forum ‘Real Estate Topics, News & Discussion’ is closed to new topics and replies.