Parents moving abroad-advice please

goonieman

My parents are moving to spain shortly and i need some advice.
There house is currently on the market and is owned outright (no mortgage)
There plan is to sell the house and put all the profits into a savings account and live off there pensions. They'll be renting in spain.
My question is are they liable to pay any sort of capital gains tax on the profits of the house sale? Is there anything else to consider?
Thanks in advance

lynzpower

they wouldnt be liable for CGT if they have lived there as their primary residence .

goonieman

Nice one thanks

ABN

How long at a time are they staying in Spain for?

Not too sure of the facts but have half a feeling that if you are not resident in the UK for at least 6 weeks of every year then their state will not be increased in line with inflation as it is for UK resident pensioners.

SeldomSensible

My parents are planning the same thing. Their house is up for sale and they'll move once it's sold.

However I'm worried that they haven't really thought through the whole thing - for instance about medical matters (they're not in the best of health) and about finances. But my dad just shrugs it all off and my mam follows his lead...

I shall keep an eye on this thread....

Mrs_pbradley936

It might be a good idea to rent the house for 6 months or a year before they sell up. They will have the rent as an income, will still be on the property ladder here and if it all goes pear shaped the worst that can happen is that they have to stay with someone until the lease on their place is up.

I know of several people who have sold up in the UK to go abroad, find it does not work out but now cannot afford to come back.

goonieman

ABN wrote:

How long at a time are they staying in Spain for?

Not too sure of the facts but have half a feeling that if you are not resident in the UK for at least 6 weeks of every year then their state will not be increased in line with inflation as it is for UK resident pensioners.

Indefinatly, My dads on a pit pension, would it apply to this aswell?

nelly05

My mum and dad split their time 50-50 between france and spain, and they still have their property over here rented out. The rental is used as an income and is tax free as they are both retired.

They always have the option t come back but they probably couldnt afford it!!

As for the health service, its better in Spain and France than here in theeir experiences.

My mum had an artritus problem, she had visited doctors over here who basically told het that when she was in a wheelchair because she couldnt walk they would operate on her foot, in spian, she was in for a checkup, the doctor said it looked painful, she expalined, she saw the consultant the next day and had the op a week later!

A good piece of advice to keep the house for at least 6 months. The they have options.

Hope they enjoy it.

Regards

goonieman

pbradley936 wrote:

It might be a good idea to rent the house for 6 months or a year before they sell up. They will have the rent as an income, will still be on the property ladder here and if it all goes pear shaped the worst that can happen is that they have to stay with someone until the lease on their place is up.

I know of several people who have sold up in the UK to go abroad, find it does not work out but now cannot afford to come back.

They wont rent, the idea of putting all procedes from the house sale into a high interest account is incase they decide to come home. They could buy a house outright.
They've thought about it for years and have basically spent a month here and a month there for the last two years so i think it will work for them.

ABN

goonieman wrote:

Indefinatly, My dads on a pit pension, would it apply to this aswell?

Don't know but would be worth inquiring about as it will make a big difference futher down the years

Robin00

If you're transferring a pension abroad make sure you use a decent currency broker to maximise the Euros you're getting each month - the banks charge high commissions and transfer costs to boot.