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!

Re: Assets declaration after moving back to the UK
 

Of course you have to do a tax return for the whole year, if you have spent more than 183 days in Spain that year - you owe it!
However, as my income tax is more in the UK, I doubt that there. Wil be much , if anything, to pay.
I bet there are some on this forum in my tax situation - What have they been advised to do? What have they done?
P S - i have just received an email from my accountant in Spain, replying to my question about the 720, and she says I do NOT have to submit a 720 next year for this year!

Re: Assets declaration after moving back to the UK
 

I still don't see them chasing you through the courts of other countries for it!!!!

Re: Assets declaration after moving back to the UK
 

Surprisingly, some of us try to to the right thing!

Re: Assets declaration after moving back to the UK
 

Don't get all high and mighty sunshine. I am not advocating anything, just stating facts.

Re: Assets declaration after moving back to the UK
 

You were talking about the procedures you have to go through with the tax office when you leave Spain and that was what I was referring to, not the different tax regime.

I learned a long time ago that it is easier and much cheaper to do your own tax declaration and asset form. It also saves a lot of money.

Re: Assets declaration after moving back to the UK
 

Just to be clear, if you were required to submit a return (because your asset values had changed) then you do need to do so.

Pregunta 2: Si una persona física se trasladó al extranjero una vez iniciado el ejercicio 2012 y deberá presentar declaración del Impuesto sobre la Renta de Personas Físicas por el ejercicio 2012. ¿Tiene obligación de presentar el Modelo informativo respecto a los bienes y derechos en el extranjero?.

Respuesta: Sí, siempre y cuando de acuerdo con la regulación de estas tres obligaciones de información resulte obligado a informar de las mismas.

Re: Assets declaration after moving back to the UK
 

well, the accountant was aware I had bought a house since returning to the UK , and still insisted I did not have to submit the 720 next year. I asked her to check with the Spanish tax office.
As I said, I realise why I have to do a tax return, as I am considered tax resident for the whole year.but I cannot see why the tax office needs to know my assets in UK now that I am living here and cancelled my residencia.
Surely there is someone here who has submitted a 720 while living in Spain, gone back to live in the UK and has bought a house- I want to know what advice they were given, or is it that they did NOTHING?-

Re: Assets declaration after moving back to the UK
 

I certainly would not take much notice of advice given to a third party by a third party.

You have plenty of good advice on this forum about it, why not just take that advice and declare it on Form 720. It's not a big deal, you can do it online in a few minutes, probably a lot less time than you will spend trying to get the answer you want to hear.

If you choose to ignore that advice and don't declare, that's fine as it's your decision.

There is nothing more I can add, or intend to add on this subject.

Re: Assets declaration after moving back to the UK
 

I should have clarified that the quote in Spanish is from the Hacienda FAQ on the Modelo 720.

Re: Assets declaration after moving back to the UK
 

So why would my accountant tell me I do not have to submit a 720 for the property I bought this year after moving back to Uk?

Re: Assets declaration after moving back to the UK
 

What would be the point, more to the question.

The way I moved back to the UK meant I didnt submit A 720, but even if I had made a previous declaration I would not be doing another for the property I purchased when I got back to the UK.

Re: Assets declaration after moving back to the UK
 

Why?

Re: Assets declaration after moving back to the UK
 

Exactly