UK Tax

UK Tax Questions? Ask a UK Tax Advisor for answers ASAP

Ask an Expert,
Get an Answer ASAP!

UK Tax

I sold my Spanish property in September 2012 and have

Customer Question
notified HMRC and asked for...
I sold my Spanish property in September 2012 and have notified HMRC and asked for a tax return form . While I was talking to them they said I could only claim expenses to offset taxes that were qouted in the contract. My Spanish solicitor witheld funds to cover Spanish Tax .
My Spanish accountant now tells me this in insufficient and I must pay around an additional €26000. They ask me in the last paragraph of their letter if I wish to pay this .Do I have any choice?
I find this a strange remark ,so my question is really five fold.
1. Should I pay this to Spain ?
2. Can I opt to pay it in the UK as there is a reciprical agreement.?
3. Can I just refuse to pay it which , of course then increases my liability here?
4. As HMRC have told me I can only deduct expenses as per the contract how can I use this amount to offset my liability in the UK?
5.Will it make any difference to my overall liablity if I pay it in one country as opposed to the other?
Submitted: 4 years ago.Category: UK Tax
Show More
Show Less
Ask Your Own UK Tax Question
Answered in 1 hour by:
4/13/2013
UK Tax Professional: Tony Tax, Tax Consultant replied 4 years ago
Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15,950
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
Verified
Hi.

1 As you are not a Spanish resident, the purchaser's lawyer is obliged to withhold 3% of the sale price which is paid to the Spain government as a payment on account of any CGT liability the seller (you) has in Spain. If you have no CGT liability in Spain, you can claim the 3% back. If your Spanish solicitor has told you that you have a CGT liability of £26,000, you have to pay it. If you don't, the Spain government will go to court in the UK to get it. I cannot explain the Spain lawyer's relaxed language though I suspect he has had other UK clients who have "done a runner" so to speak.

2 You cannot opt to pay tax only in the UK. Any CGT you pay in Spain will be deductible from your CGT liability in the UK, if you have one.

3 You cannot refuse to pay it. That would be breaking the law. The property is in Spain so the Spanish government can have any tax system it likes governing property on its land.

4 I am not sure what HMRC mean by the comments they made. I wouldn't trust it in any event. You or your UK accountant should submit a calculation of the gain or loss based on UK tax principles (basically, sale proceeds, less costs of sale, purchase price, improvements costs, costs of purchase). The calculation of the gain for Spanish tax purposes may be slightly different.

5 As I said earlier, you cannot pay only in one country. Spain charges CGT on non-residents and as a UK resident, you are liable to CGT in the UK on gains wherever in the world they are made. If you didn't have a CGT liability in Spain, you would pay more CGT in the UK as there would be nothing to offset, obviously.

Take a look here and here for information on CGT in Spain.

I hope this helps but let me know if you have any further questions.
Ask Your Own UK Tax Question
Customer reply replied 4 years ago

Well I sent a follow up question to you for which I seem to have also been charged and I have not had a reply. As this is the first time i have contacted an expert on this site I have asked that they clarify what I have been charged. I shall agree to pay you once,but I think i need to speak to an HMRC expert to clarify the situation on question 4

UK Tax Professional: Tony Tax, Tax Consultant replied 4 years ago
You opened up another question instead of following up here. I'll send a message to just answer to refund the other question and copy the answer here.
Ask Your Own UK Tax Question
UK Tax Professional: Tony Tax, Tax Consultant replied 4 years ago
Hi.

Here is my answer to the other question which is really a follow up to this one:

The UK tax office will only be interested in the sale of the property, not the furnishings unless there were individual items sold for more than £6,000. Take a look at HS293 here for the CGT rules on chattels.

A notarised document from your accountant or lawyer which splits the proceeds between the property and the furnishings will suffice for HMRC purposes. They may not even ask to see the contract of sale but it would make sense to be ready if they do.

Let me know if you have any further questions.
Ask Your Own UK Tax Question
Ask Tony Tax Your Own Question
Tony Tax
Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15,950
15,950 Satisfied Customers
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.

Tony Tax is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Sam

Sam

Accountant

6,512 satisfied customers

26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

bigduckontax

bigduckontax

Accountant

868 satisfied customers

FCCA FCMA CGMA ACIS

TEAP007

TEAP007

Tax Preparer

759 satisfied customers

Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years

Andrew Baker(baktax)

Andrew Baker(baktax)

Personal Tax Adviser

756 satisfied customers

35+ years experience in income tax, CGT, non-residence

berduchwal

berduchwal

Accountant

669 satisfied customers

Qualified accountant and bookkeeper running my own practice since 2008.

Clare

Clare

Solicitor

148 satisfied customers

25 years exeperience as a high street solcitor

Mrs-Tax

Mrs-Tax

Tax Adviser

59 satisfied customers

Law Degree, 19 years in UK Tax.

< Previous | Next >

Related UK Tax Questions
UK Tax question My client contributes 10% of his salary into
UK Tax questionMy client contributes 10% of his salary into a workplace pension each month, in addition to his employer's contribution of 5%.His work have confirmed that his 10% contribution is deduct… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
I have a question, how non-resident landlord can get
I have a question, how non-resident landlord can get national insurance number and UTR and does he need those in order to submit self assessment? … read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,069 satisfied customers
Second opinion] If my only income is state pension and
Second opinion] Hi If my only income is state pension and rental income from property, can I claim marriage allowance from my wife as I am not employed or self employed but still complete a tax return… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
868 satisfied customers
Im trying to do my micro entity accounts submission and cant
hi.....im trying to do my micro entity accounts submission and cant work out where Im going wrong … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
868 satisfied customers
I've been claiming working and child tax credits for over
Hi I've been claiming working and child tax credits for over two years now. I live in rented accommodation which is in my daughters dads name. My ex partner name is ***** ***** tenancy which hasn't be… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
I am buying and selling tickets. I have no other income. I
Hi,I am buying and selling tickets. I have no other income.I purchase tickets from a primary seller or from the promoter directly then resell on secondary platforms such as viagogo and stubhub. Such p… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,069 satisfied customers
I've just electronically filed my 2016-17 UK tax return. I
I've just electronically filed my 2016-17 UK tax return. I owe about £540 and have elected for it NOT to be collected through my wages. This is a dumb question, but what happens next? Does the HMRC se… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
I need assistance with my micro entity statement. I get the
I need assistance with my micro entity statement. I get the following error when I try to submit the form Current period: Shareholders' funds must be equal to the total net assets (liabilities) … read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,069 satisfied customers
I m interested in finding out about the extra statutory tax
Hi, I m interested in finding out about the extra statutory tax consession A 10. I was resident overseas from 2000 to 2015 and could only contribute to my overseas company savings plan (6% from me and… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
868 satisfied customers
Could someone tell me about the married persons tax
Could someone tell me about the married persons tax allowance .I saw tonight on the money saving expert programme ,if you do not pay tax ,and your husband does ,you can claim for some kind of tax reli… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
My husband received a payment last year from an employment
My husband received a payment last year from an employment benefit trust based in Jersey. Tax was paid over to the Revenue. Where should he put this on his return he had left the companies employment … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
868 satisfied customers
I am trying to file Ltd Company micro-entity accounts with
Hi, I am trying to file Ltd Company micro-entity accounts with Companies house and i keep getting the error message "shareholders funds must be equal to the total net assets (liabilities). We are a ve… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,069 satisfied customers
I am requesting to my 10/19/2011 question: I'll be 65 in
Hi, I am requesting a follow up to my 10/19/2011 question: I'll be 65 in March 2012 and am probably going to get a Original Question URL: http://www.justanswer.com/uk-tax/5phxe-i-ll-65-march-2012-prob… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
I'm doing the accounts for my sister who owns a micro entity
Hi Pearl, My name is ***** ***** I'm doing the accounts for my sister who owns a micro entity business company. Last year was the first accounting year and I laid an abrieved.online account. I'm about… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
868 satisfied customers
I have a UK/Australia tax question not social security. I
I have a UK/Australia tax question not social security … read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
868 satisfied customers
You recently (Nov 16th) answered questions in relation to
You recently (Nov 16th) answered questions in relation to CGT on the sale of a holiday home in France, for which many thanks. I do have a few more specific questions re. other allowable costs. These a… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,069 satisfied customers
My father and step mother are both in separate care homes.
My father and step mother are both in separate care homes. They jointly own a house. My father has a state and occupational pension both of which are considered as sole his income by the local authori… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,069 satisfied customers
I wanted to know if a uk limited company could lend me
I wanted to know if a uk limited company could lend me monies to purchase a property. I am not a director of the company … read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x