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Non Resident and non Domiciled advantages?
Rofa
Posts: 2 Newbie
in Cutting tax
I am a UK national, widowed and have been living in Spain for nearly ten years and have now been resident for 3 - it is where my main residence is. I also bought a house in Finland with my Finnish partner a year ago. I currently pay tax on a UK widows pension (local gvt) which is taxed at source and in the not too distant future will pay tax on a state pension. I also own some land in the UK which I wish to sell for building purposes. I have no intention of returning to live in the UK. If I obtain non resident and and non domiciled status can I stop paying UK tax and also avoid capital gains on the land? If so how easy is it to obtain this status? Many thanks in advance!!!!
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Comments
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If you are domiciled in the Kingdom of Spain (and this is dubious based on the few details provided and recent UK case law) then you would escape UK IHT on non-UK sited estate on your death.
If you are not ordinarily resident in the UK then there is no UK CGT. Spanish CGT may be higher but you will owe this in any case.0 -
Cook_County wrote:If you are domiciled in the Kingdom of Spain (and this is dubious based on the few details provided and recent UK case law) then you would escape UK IHT on non-UK sited estate on your death
If you are not ordinarily resident in the UK then there is no UK CGT. Spanish CGT may be higher but you will owe this in any case.
Thank you for that - not too worried about what happens when I am gone!
The second part is very useful - I thought liability to CGT was based on domiciled status rather than residency status.
You don't comment on the taxation at source position - is this related to either status do you know? If I there is some way to avoid it I should give it thought - taking into account the Spanish tax position of course!0 -
I assume you have been declaring your UK pension in Spain for at least 3 years now?0
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