SgtTroy

I'm not disputing that at all.

I have read somewhere few months ago that as a matter of fact HMRC does not always respond to all requests for cooperation.

There might be a relevance threshold, there might be reciprocity issues, lots of other factors as well.

wellinever

It cant work like that, surely.....if you declared that your intention was to make a reinvestment and AT does not want to know what % you intend to reinvest, then you would be taxed at a much higher rate. That would decrease your ability to make a reinvestment.??

Dafty

My post was strictly hypothetical by the way !
Portugal, despite all the bureaucratic nonsense, is a good place to live, and I wouldn,t dream of returning to UK in any case.
Having lost the roll over gain to a UK property agreement, this must have had a profound effect on some who had planned to return at some point, considering the spiraling costs of UK property.
I know that in years gone by, if you were a non resident and sold property in Portugal, the lawyer involved in the sale would normally withold the estimated CGT amount pending a demand from AT.
A friend of mine waited 4 years for his lawyer to release a tax deposit that was never claimed by AT.
Whether the same rules apply now, I don,t know, but after a hard...ish Brexit, it would be interesting to know what co-operation agreements still stand, and which don,t

SgtTroy

The agreements are OECD model, not EU ones.

TonyJ1

All I know is that this has been used with HMRC, and with at least one Nordic country. In the case of the UK, in at least one case the values were less than €10,000

TonyJ1

If the lawyer held the money, it was not under any law, but he could have done so if he was the fiscal representative and wanted to make sure that there were no hidden tax liabilities. However the real reason is probably 'other'.

TonyJ1

If you intend to reinvest, the capital gain is suspended - it is the taxpayers declaration. If no declaration is made, then the Tax authority will issue a tax declaration and it will be under the assumption that there will be no reinvestment. If a declaration was made of the intention to reinvest and if it is not carried out, the returns will have to be substituted and interest will be due on taxes not maid

wellinever

OK, that is what I assume MUST happen, or if one decided to make a reinvestment bigger than the sale, then Tax would be Nada. But if some money was being held `in trust` by the AT then that reinvestment +, couldn`t take place, without even more dosh being pumped in.
Its bad enough that they give with one hand but take away with the other (ie IMT paid on reinvestment purchase)
Question is exactly when will house prices tumble??? Buy now or later in 3 years time?? 64K question as always, never a good time to both buy and sell.

TonyJ1

If I could see through the looking glass, I would be a millionaire.
The tax authority does not hold money in trust.

wellinever

LOL....just as well. But with ECB printing stopping and inflation rises imminent, interest rates increases cant be too far behind, not just in PT of course

SgtTroy

Hardly anyone could predict the direction of the property market.

Furthermore, a house is a place to live in and feel comfortable, not means of speculation.

I would imagine that with the end of the moratorium there would be some reduction in the prices, but again - on what sort of properties...

dingg

IF you're under nhr cgt is waivered iirc, so if after 8 or 9 years you have made a substantial capital gain on your property price would it be beneficial to lock that gain in, buy another property within the 3 years at same value, then if you need to sell the gain will be much smaller iyswim, or is this loop hole closed?

Red Eric

It never existed, if you're talking about gains on PT property.

Under NHR, capital gains on the sale of foreign properties are exempt from PT CGT. Properties situated in Portugal are subject to PT CGT on sale, even if one has NHR status.

dingg

Ahh that is news to me 😳

Ok the 2nd part of my query remains, say you realise that gain

Eg buy something 300k sell 500k 8 yrs later then
Buy something 500k then sell 500k a year later

Whats the cgt situation then?

SgtTroy

200K gain on the first sale, 0 gain on the second?