Will I pay tax? - Page 2

I heard today that if you are over 65 and you sell your primary UK residence (primary being the important bit there), you are most probably not liable for CGT in Spain even if it is in the same year you become tax resident in Spain.  My brother is over 65 and will be in that situation so I was starting to look for mitigation.

I haven't dug as deep as I need with tax accountants yet but I am getting that message consistently from quite a few sources.  The answer is probably to call a tax accountant with your specific circumstances.  You may get a nice surprise rather than a 19% and upwards bill from the taxman.

The over 65 situation is correct, but only if this has been your main residence for over 3 years - which is not the case for the OP. Clearly, if you are liable for CGT in Spain then you are a tax resident, so any property in the UK could not be your main residence.

The only way to avoid this would be to sell your UK residence before you become a tax resident of Spain - which would also avoid CGT in Spain for anyone (the over 65 becomes a moot point).

The CGT rules are only for pensioners tax resident in Spain, and who have made tax declarations for 4 years, and only apply to a main residence in Spain, not foreign properties.

Note that it is essential to make the annual returns even if the result is a zero tax bill to qualify. “Not bothering” can ultimately prove expensive and a tax return for most people can be done easily and for nothing.