Assets declaration after moving back to the UK
 

to anyone on this forum who has moved backed to the UK , after more than 183 days in Spain , do you know whether you have to submit an assets declaration form next year, as your UK bank balance will have increased by well over 20k due to proceeds from house sale, plus you will probably have bought a property, both things will would normally result in another 720 being submitted.
I know there will have to be an income tax declaration as being tax resident till December, but why would another 720 be necessary, when no longer living in Spain?

Re: Assets declaration after moving back to the UK
 

In the same way that you must submit a tax return for any year that you were tax resident, you must complete a Form 720 for the same tax year.

Why? Because you were living in Spain in that year.

Re: Assets declaration after moving back to the UK
 

If the house proceeds only temporarily swell the UK savings bank, as they will be used to buy a house, therefore making the balance unaltered or lower by Dec 31st , will it still have to be mentioned.
I understand the need for the income tax return, as tax is payable, but what use will an asset declaration be to Hacienda?
I wonder how many returnees to the UK will submit it.......?

Re: Assets declaration after moving back to the UK
 

It is the asset value on the 31st December that matters. What happens during the year is irrelevant.

Just remember that the fines for non declaration of assets are far higher than the fines for not doing a tax declaration.

Re: Assets declaration after moving back to the UK
 

If you submitted Form 720 in the year before, you only need to report again if:

The value of an existing asset grew by more than €20,000, or
You sold an asset/closed an account, or
You obtained a new asset.

Re: Assets declaration after moving back to the UK
 

So, I would just have to declare the house we have just bought, on the declaration next year, as other assets previously declared have not increased by 20 k on Dec 31st 2015
Is that correct

Re: Assets declaration after moving back to the UK
 

If they have moved back to the UK and have no further interest in Spain, I would suggest that they do nothing.

Re: Assets declaration after moving back to the UK
 

But what if someone is on the Spanish tax system, and has previously submitted a 720?

Re: Assets declaration after moving back to the UK
 

Yes, it's probably a waste of time, since there is no requirement to submit a declaration if the assets have not changed so they won't necessarily be expecting one.

Assuming you go through the process of notifying them that you are no longer tax resident, it would be very unlikely that they would ever bother you.

However, if someone asks what the legal requirement is, I will tell them. If they choose to ignore it that's fine by me, but I would not encourage them to ignore the law as that is their prerogative. At least, if you know what you are supposed to do, you can then make a reasoned decision as to whether you ignore it or not.

Re: Assets declaration after moving back to the UK
 

Dealing with the Spanish tax system is a minefield!

Re: Assets declaration after moving back to the UK
 

Why?

Surely it's no different in the other direction? You still have to do asset declarations, tax returns etc. In the UK you can even do partial tax returns (for part of the year) so perhaps it's more complicated in UK - just a thought.

Re: Assets declaration after moving back to the UK
 

It is a hassle.
The problem is, the Spanish tax year is from Jan to Dec, and if you leave Spain after 183 days and go back to the UK you are considered resident for the whole year by the Spanish tax office,:cool:but you will be liable for UK tax the minute your feet touch UK soil. This means you have to have any UK tax subtracted from your Spanish return.
Remaining tax resident for Spain entails still being liable for Spanish inheritance tax, even though you are living in the UK, plus CGT on any winnings, lump sums, just as if you lived in Spain.
The thing with The assets declaration is, what use is it to the Spanish tax office that I bought a house after moving back to the UK?
Wonder how many will inform the Spanish tax office if their spouse dies, or if they win the UK lottery, meaning they be given 20% away- No prizes for the answer.
It takes time to shake Spanish sand ( and taxman) off your feet when you move back to the UK!

Re: Assets declaration after moving back to the UK
 

It's equally bad or even worse when you leave the UK to come to Spain.

Re: Assets declaration after moving back to the UK
 

But if you have got all your money out of Spain I doubt they will chase you around Europe for a final tax return

Re: Assets declaration after moving back to the UK
 

Do you think so?
At least if I came to Spain, and my husband died I wouldn't have to pay inheritance tax as spouses are exempt in the UK and The tax allowance much more generous,
Being tax resident in Spain for the whole year is a pain too.
Also I don't have to pay an accountant a load of money to do a tax declaration or a 720 .
What makes it worse is a lot of conflicting advice from tax advisors.
We have to trust someone apparently more knowledgeable than us to do our taxes, but we have to pay the fines when it's not done properly!