ricko

Does this the 5 year rule is now longer valid?
If so, then I don't understand, as, later on, you say you will get clobbered with CGT if you return within 5 years.
Or is it that some other rule has changed, such that the house sale situation I proposed is now incorrect?

Andyj100

my understanding is that you have to be a qualifying non-resident in accordance with the tax law of 2015 (In the back of my mind is that it’s actually 4 full consecutive tax years, usually approximated to 5 years) to get the CGT relief on the pre2015 gain.

I was surprised i was not required to be non-resident for 5 years preceding the sale, but it does mean if I return before I qualify I get a very large CGT bill (tens of thousands). I’ll be happy outside the U.K. for the next two or 3 years.

I sought professional advice and paid a few hundred. this included making declarations about my claim with my non-resident tax return prior to selling.

Tô be honest, I had assumed the worst, and had a pleasant surprise. HMRC accepted my 19/20 return without any questions.

Death and taxation, and all that.

obviously if you bought a house for 10k in 1970 and are going to sell it for a million, it’s worth being absolutely sure of the rules. There was a change in April 2020 when the proportion of the gain taxed was increased. That was one of the motivators for me to sell up and move the proceeds offshore. If U.K. house prices shoot up, I will never be able to afford to go back. I’m assuming Brexit works in my favour in this respect.

ricko

I only started learning the tax laws a couple of years ago, and found them very complicated; and now they are trying to overcomplicate them! (Is there an emoji that combines a wry smile with exasperation).

wellinever

Are there any allowances given by Portugal, for Portuguese tax resident when taxing income from UK rental income, as in Service charges and Ground Rents on a leasehold property or other out of the normal one off costs such as Fire assessment remedial works, that are added to normal service charges, payable by the leaseholder under the terms of a lease.
Or is the gross income simply added to any other non Portuguese income and taxed at nominal rates?

TonyJ1

Should report net income -but this should be adjusted to Portuguese rules - no depreciation, no finance costs

Fluffyhead

No-one else has answered you wellinever so this is what I do but I don't know if it's correct! I simply put my net income from flat rental in the UK (as per my bank statements) as it would tally with my UK tax return (apart from the different tax years and currency!) which we were asked to supply in the days when we took our paper tax return to finanças. When we had a new bathroom installed I did not put that against income as it was capital expenditure and would have meant that we had no income that year.

TonyJ1

Under the nhr, there is no requirement for effective taxation on the rent - have to actually read the double tax treaty and see if the other country has the right to tax it - if so, then no tax in PT under the nhr. This is handled automatically by the tax 'system' if correctly coded and return properly submitted.

TonyJ1

Unless there was no bathroom there before, a replacement would be considered a 'maintenance and repair'. I

TonyJ1

The net income is reportable - but should be adjusted back for depreciation (Portugal does not allow depreciation as a deduction) - same with fiance charges