Re: Re: CGT & IHT – European Court????


PS I was not aware the EU are looking into this. If they can it would do Spain a great favour -they don’t deserve because they could clean up their act themselves but have always to be dragged kicking ! Would appreciate any news too !The Spanish CGT would not seemingly be so much of a problem as the IHT for a non resident owner because apparently you can just pay 3% and leave . Now you are still supposed to file a return within a year but apparently they do not persue you abroad -that is my current understanding. Even if you sell for less than you paid 3% is not astronomical. However 21% which is what you should pay is something different particularly if you had a difficult purchase if it were enforced. Then there may be a CGT liability with HMRC .Of course being resident does give IHT other options -if your beneficiary(ies) keep it for 10 years there isthen none to pay but being resident brings other difficulties if you also own a property in your name in UK. I saw an article today in the Telegraph (page10) that IHT in UK was the second highest in Europe after Ireland. This cannot be correct: In the UK no IHT is paid on estates of £328000 or less by the donor and none at all is paid by beneficiaries. In Spain it is the beneficiary(ies) that pay the tax not the donor and this tax starts on as little as anything over 7500 Euros that each beneficiary is allowed free of tax -you need a maybe 6 beneficiaries at 7500 to cover a small flat near the bottom of the market .Now admittedly all the beneficiaries would have to agree to sell it and if one refused till he died because he wanted to use it and pay the running cost -then maybe Hacienda have to say well there are 6 beneficiaries and X 7500 Euros that covers the current marketl value so there IS NO TAX to pay and they can inherit and continue in beneficial ownership – Is my analysis correct please -somebody might know to the benefit of others too ? ????