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Retaining residency

Retaining residency

Old Jun 28th 2020, 7:47 am
  #16  
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Default Re: Retaining residency

Originally Posted by Red Eric View Post
As far as I'm aware, with regard to immoveable property, the only condition for an exemption via NHR would be that it is potentially taxable in the country where the property is situated, under the terms of the DTT with that country. When I've a little more spare time I'll try to get hold of the Act which details the regime and see if there's anything else buried in there.
Just had a quick scoot through and there's nothing else that I can see, so as long as it's you and not an offshore company or something that's the owner of the house, that would seem to be that.

And further to what I posted above about UK CGT liability as a non resident (if that's how you're going to be classified - so this is a big if), it would appear that in addition to only being liable for gains since 2015, you don't count the years in which you lived in the house as a UK resident, nor the final 9 months of ownership, so that seems to me at first glance to put you on quite a small liability, if indeed there's any at all.

Bummer of a time to have a house sale fall through, and the current situation plus the aftermath are going to complicate things even further, I guess. Best of luck with finding a new purchaser and fingers crossed it's a serious one next time.
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Old Jun 30th 2020, 10:04 pm
  #17  
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Default Re: Retaining residency

That's very good news.
I don't expect to pay much, if any, CGT in the UK for the house because of
PPR.
It was a very inopportune time for the house sale to fall through, and then the
March 2019 deadline turned out not to be a deadline at all.
At lease the episode gave me some experience in selling a house.
Thanks for your efforts in looking into this.


Originally Posted by Red Eric View Post
Just had a quick scoot through and there's nothing else that I can see, so as long as it's you and not an offshore company or something that's the owner of the house, that would seem to be that.

And further to what I posted above about UK CGT liability as a non resident (if that's how you're going to be classified - so this is a big if), it would appear that in addition to only being liable for gains since 2015, you don't count the years in which you lived in the house as a UK resident, nor the final 9 months of ownership, so that seems to me at first glance to put you on quite a small liability, if indeed there's any at all.

Bummer of a time to have a house sale fall through, and the current situation plus the aftermath are going to complicate things even further, I guess. Best of luck with finding a new purchaser and fingers crossed it's a serious one next time.
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Old Jul 1st 2020, 5:38 am
  #18  
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Default Re: Retaining residency

Originally Posted by ricko View Post
That's very good news.
I don't expect to pay much, if any, CGT in the UK for the house because of
PPR.
It was a very inopportune time for the house sale to fall through, and then the
March 2019 deadline turned out not to be a deadline at all.
At lease the episode gave me some experience in selling a house.
Thanks for your efforts in looking into this.
You're very welcome.

I don't know what you have done or ought to do for the best regarding informing the tax authorities in both countries about your current place of residence but if you've been there for a while and you're going to be there for the foreseeable future, it might be something you should consider.
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Old Jul 1st 2020, 9:10 pm
  #19  
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Default Re: Retaining residency

regarding informing the tax authorities in both countries about your current place of residence

I tried informing the PT authorities, but could find nothing on the Portal das Financas.
I emailed them, but got an automated response that did not give me an address I could use.
Due to the time I've spent in the UK, I will need to fill in tax returns for the years 2019-2020, and 2020-2021.
I don't particularly mind paying tax for these two years, it was paying CGT on my home that was the real concern.
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Old Jul 2nd 2020, 9:38 am
  #20  
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Default Re: Retaining residency

Originally Posted by ricko View Post
regarding informing the tax authorities in both countries about your current place of residence

I tried informing the PT authorities, but could find nothing on the Portal das Financas.
I emailed them, but got an automated response that did not give me an address I could use.
Due to the time I've spent in the UK, I will need to fill in tax returns for the years 2019-2020, and 2020-2021.
I don't particularly mind paying tax for these two years, it was paying CGT on my home that was the real concern.
I stumped upon some FAQ on portal de financas, it states if you cease to be PT tax resident you need to change the address to foreign address. So it seems your tax status is connected to your address on their record. Obviously may be a problem giving the current travel restrictions.
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Old Jul 2nd 2020, 9:15 pm
  #21  
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Default Re: Retaining residency

Originally Posted by qianh View Post
I stumped upon some FAQ on portal de financas, it states if you cease to be PT tax resident you need to change the address to foreign address. So it seems your tax status is connected to your address on their record. Obviously may be a problem giving the current travel restrictions.
I thought that I couldn't change address due to lack of familiarity with the website.
Why would they want to stop you changing to a foreign address?
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