Capital gains tax whilst living abroad

barrydh

My partener has sold her UK house which is her second property in the UK ( she still owns the second house).. She lives in Spain and has done so for about 10 years. Is she liable for capital gains tax in both countries? We have worked it out she will have CG tax liability of about 4K. Thanks

sherlock228

Article 11 UK / Spain 2013 Tax treaty - yes TECHNICALLY she is liable for CGT in both countries if genuinely non resident in the UK, but under the terms of the treaty she can offset the tax in one against the liability in another so may only need to pay once.

This is a reasonable summary :
https://www.litrg.org.uk/savings-property/capital-gains-tax/non-residents-and-capital-gains-tax

Non-residents and capital gains tax | Low Incomes Tax Reform Group

poseidon1

If she is Spanish tax resident she will be liable to Spanish CGT on the UK property disposal with credit ( via Spain/UK double tax agreement) for CGT paid in UK.

https://pccwealth.com/capital-gains-tax-in-spain-on-uk-property/

Presumably if she is Spanish tax resident she is compliant and submitting annual Spanish tax returns?

LITRG

https://forums.moneysavingexpert.com/discussion/comment/82021770#Comment_82021770

Thank you @sherlock228 for sharing our guidance! We came here to share that link, and also links to our guidance pages on double taxation and selling your home - the latter includes some information on periods of deemed occupation which may be relevant to the OP depending on their circumstances. Links as follows:

Double taxation | Low Incomes Tax Reform Group

Selling your home | Low Incomes Tax Reform Group

Sam_666

Does she has NT tax code in UK?
Has she properly notified hmrc about move to Spain?

silvercar

https://forums.moneysavingexpert.com/discussion/6670964/capital-gains-tax-whilst-living-abroad

Depends if she is domiciled in Spain, has fully left the UK and doesn’t visit the UK for more than X days. x depends on how many connections she has in the UK and how long she has been out of the UK, it can be as low as only allowed 45 days in the Uk in the tax year, but can be much higher.