ricko

I've just read that properties purchased before 1989 are exempt for CGT purposes.

On the tax forms, coming in April, is it possible to just put the year of purchase, or will you
still have to put in purchase/sale prices and expenses details?

Alan PT

I've never seen that exemption, do you have a source?

For properties owned before 31st March 1982, you use the 1982 value as the baseline, but increases after that date are potentially liable

Is it your primary residence? Are you UK resident or non-resident?

If you are non-resident then you must report the sale within 60 days, not wait for your tax return: https://www.gov.uk/guidance/capital-...ntial-property

ricko

This is for Portuguese CGT.

For home owners, UK CGT will be exempt because of PPR.

Might the Portuguese exemption I mentioned, only be for Portuguese properties?
I saw the exemption on:
https://www.portugalresident.com/irs...os-category-g/

ricko

This is for Portuguese CGT.
I've just realised the ambiguity in mentioning April; the forms become available in Portugal then, but, also, the tax year ends then in the UK.
For home owners, UK CGT will be exempt because of PPR.

Might the Portuguese exemption I mentioned, only be for Portuguese properties?
I saw the exemption on:

CGT link

Alan PT

Please check very carefully the UK rules - if you are UK non-resident then PPR exemption may provide you with only a partial exemption, depending on when you left the UK. Also, even if no CGT is due, you must complete the detailed assessment to confirm this and submit it within 60 days of sale. HMRC can and will levy fines for non-submission even if no tax is due (don't you love the UK...)

Good news in respect of Portugal however - if you are resident in Portugal and have NHR, then no Portuguese CGT applies:
https://www.lvpadvogados.com/capital...nhr-tax-regime

"As for Capital Gains from the disposal of immovable property (“real estate”):Portugal has signed around 90 Double taxation agreements over the years and most of them provide that capital gains obtained from the sale of an immovable property may be taxed at the country where the property is located.

According to the NHR rules, Portugal shall exempt this income from any further taxation.

The OECD Model Tax Convention also provides that the country of source may tax the capital gains income arising from the alienation of immovable property."

Sunseeker1st

This is for Potyuguese properties and your main residence here. We bought ours in 1988 and were exempt.

ricko

I had paid UK taxes up to the sale, so I received the full exemption.

RedEric had previously pointed out the exemption through NHR.
It was not the exemption I was asking about, but rather the filling out of the Portuguese tax forms.
I didn't want to go to the trouble of collecting over 30 years of data, if I only had to say that the property was bought before 1989.
So the question was really for those who had gone through the process of filling in the CGT portion of the Portuguese tax form.

ricko

When you did your tax return for your sale, did you have to complete all the buying/selling/expenses information, or was just putting down the year of purchase sufficient?

Alan PT

My understanding is that you don't need to declare it at all, since no tax is due

SgtTroy

You'd better ask PT tax office for advice.

1. I think the exemption applies only to PT properties, but I have no idea what happens with foreign properties.
2. For PT properties there is a coefficient reflecting the increase in PT prices over the years, which is applied to the original purchase price (but not to the local equivalent of SDLT paid at the time, which is also taken into consideration for calculating CGT). Whether that coefficient would be applicable to a foreign property bought/sold on a market with a completely different dynamics is anyone's guess.

Worst case scenario - foreign property would not be exempt, irrespective of the year of purchase and there would be no coefficient applied. And I am not even going into how you should calculate £/PTE exchange rate in pre-euro times to determine the purchase price...

Best case scenario - NHR.

Sunseeker1st

We have an Accountant here who did it for us so sorry I don't know. I assume they had to attach proof of purchase/sale which they have on our behalf.

RichardHenshall

I would agree that if UK resident at the time of the sale of the UK property there is no need to declare anything to Portugal as it's irrelevant. However ricko may have been paying taxes in the UK while resident in Portugal and in that case it must be declared to Portugal, with all that entails.

liveaboard

Yes.
Or have your accountant do it for you.
You will get an official reply in writing. Then you know for sure.

I have a similar situation, my accountant is asking for the word on it from financas.
This sort of thing can get you into trouble if you don't do it right.
Also, there can be ways to minimize your tax through reinvestment etc,. depending on a lot of details.

Before buying or selling property, consult with a professional.

ricko

There are some types of income that, though exempt, still need to be reported.
For example, pensions under the NHR regime.
I think this is because it will affect how other types of income are taxed.

Is it that CGT is completely independent from other types of income?

ricko

I know that the sale should be exempt from tax, and was trying to avoid collecting 30 years of data.
Your input shows that there may be many more pitfalls in reporting the sale.