capital gains tax
Mar 12th 2007, 2:32 pm
#1
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capital gains tax
I am a UK resident selling a property in Spain.I spent Euros 20,000 fitting out the property .can I claim this expenditure (supported by receipts) against the profit when calculating Capital Gains Tax? I bought the house off plan and selling 2 years after completion.
Mar 12th 2007, 2:43 pm
#2
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Re: capital gains tax
Yes, as long as the works were done with the relevant (if any) licence(s). You can also offset all "official" expenses including notario, lawyer and estate agency fees.
Mar 12th 2007, 2:53 pm
#3
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Re: capital gains tax
Thank you Hillybilly. the expenditure consists of installation of hot and cold aircon,grills against the windows ,curtains and curtain ploes and furniture. So not licence type expenditure. Do I provide my selling lawyer with the list or do I have to employ an accountant?
Mar 12th 2007, 3:03 pm
#4
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Re: capital gains tax
You should of had licences for the aircon and grills works. ;-(
Mar 12th 2007, 3:53 pm
#5
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Re: capital gains tax
When you do your Capital Gains Tax declaration it is a kind of self-assessment and you just put down whatever expenses you like. You do not have to provide paperwork for expenses at the time but need to be in a position to justify your figures should AEAT decide to audit your return.
The only expenses that would be accepted apart, from legal fees and taxes, etc, are those that have been carried out with a building licence and, then, only to the value that had been declared when applying for the licence.
There are virtually no circumstances where you can build a dwelling on rural land unless you are registered and paying tax and social security as a farmer. Many properties, if they have a licence at all, only have a licence for the construction of an agricultural building which is built to look like a house.
The problem is that you will not get a certificate of first occupation without which you will not be able to contract for services.
The only expenses that would be accepted apart, from legal fees and taxes, etc, are those that have been carried out with a building licence and, then, only to the value that had been declared when applying for the licence.
There are virtually no circumstances where you can build a dwelling on rural land unless you are registered and paying tax and social security as a farmer. Many properties, if they have a licence at all, only have a licence for the construction of an agricultural building which is built to look like a house.
The problem is that you will not get a certificate of first occupation without which you will not be able to contract for services.
Mar 12th 2007, 4:31 pm
#6
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Joined: Mar 2007
Posts: 7
Re: capital gains tax
When you do your Capital Gains Tax declaration it is a kind of self-assessment and you just put down whatever expenses you like. You do not have to provide paperwork for expenses at the time but need to be in a position to justify your figures should AEAT decide to audit your return.
The only expenses that would be accepted apart, from legal fees and taxes, etc, are those that have been carried out with a building licence and, then, only to the value that had been declared when applying for the licence.
There are virtually no circumstances where you can build a dwelling on rural land unless you are registered and paying tax and social security as a farmer. Many properties, if they have a licence at all, only have a licence for the construction of an agricultural building which is built to look like a house.
The problem is that you will not get a certificate of first occupation without which you will not be able to contract for services.
The only expenses that would be accepted apart, from legal fees and taxes, etc, are those that have been carried out with a building licence and, then, only to the value that had been declared when applying for the licence.
There are virtually no circumstances where you can build a dwelling on rural land unless you are registered and paying tax and social security as a farmer. Many properties, if they have a licence at all, only have a licence for the construction of an agricultural building which is built to look like a house.
The problem is that you will not get a certificate of first occupation without which you will not be able to contract for services.
Mar 12th 2007, 6:40 pm
#7
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Re: capital gains tax
Any Admin or mod able to split this thread?? 
There are two seperate issues going on here and it's getting a bit confusing
There are two seperate issues going on here and it's getting a bit confusing
Mar 12th 2007, 6:49 pm
#8
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Mar 13th 2007, 3:27 pm
#9
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Mar 13th 2007, 3:35 pm
#10
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Re: capital gains tax
You can certainly claim legal fees and expenses and taxes paid on the pruchase as long as you have proper receipted accounts from lawyer, gestor, agent etc.
You cannot claim for furniture nor, I would suggest, the extras you paid for initially as these should have been included in the original escritura value.
Don't forget the coefficient that you can apply to the purchase value to take into account inflation.
You cannot claim for furniture nor, I would suggest, the extras you paid for initially as these should have been included in the original escritura value.
Don't forget the coefficient that you can apply to the purchase value to take into account inflation.
