Neptuno

Bob22-even if your house was empty in UK and you lived in Spain, you would still have to pay "imputed" income tax on it in Spain!
How did the 720 affect your decision whether to move to Spain, or not? It's a legal requirement to state all your assets anyway.
Isn't it also the case, that if you sold your only residence in UK ,moved to Spain in the same year before July the 2nd(therefore being more than 183 days in Spain, and regarded as resident for tax for the whole year) you would, in the following year pay CGT on it in Spain? The hacienda doesn't care that it was your only residence. Of course if the proceeds were used to buy the house in Spain, CGT would be minimal, but if you hoped to use the proceeds from your house to enjoy your retirement, and just rented then a big chunk would go in CGT. I think it is unfair to tax someone on selling a house before they even moved to Spain- after they have moved there is a different matter.
How many people have moved to Spain completely unaware of the above?
hundreds, maybe thousands have done it for years. What will happen to them?

bobd22

The 720 hasn't changed anything for myself more sharpened my focus. I had researched prior to buying in Spain and was fully aware of the requirement to pay non resident tax on Spanish property which I have always done.I was not aware and I don't think I will be the only one that if Spanish tax resident I would also have to pay it on my Uk property. It has for me nothing whatso ever to do with the cost but the principle, I have written quite a bit about my feelings on the 720 thread.

I have no intention of selling our uk property never have so CGT doesn't enter into my plans. Inheritance does and as I have said should we move to Spain full time we would cover that by changing UK wills.

I do not think in my view that my UK property has anything to do with Spain other than should I die as a Spanish resident or sell it. I do know that is not the same view as many on here hold. I wonder out of them how many will have also purchased their Spanish property with black money? No doubt siting the reason for that being only way the Spanish would sell? Sorry I paid everything legal all taxes etc when I boughtband continue to pay all due. Those that bought that way to be honest have a cheek criticising those that hold asetts in the uk and try and hang on to them to pass on, kettle and black springs to mind.
We may become resident in the future or may just stay half and half. Not only Spain has been has been hit by this mess, my wife has to wait 6 years longer for her pension and continues to work. Our plan although not exactly on track is fluid enough at the minute to cope. What I will ensure is that within the law UK and Spain I retain as much of my assets as possible

Fredbargate

That makes two of us.

Although I have always had property in Gib, which is much better than returning to the UK.

I sit here now typing with a view to Africa and Spain,also I was in Spain Monday.

WFA never expected it but did receive a payment last year which looks like being a one and only, but who cares, do I really deserve it living out here and not working in UK since 1975.

me me

Thank you, I will consider your advice, poverty is the new riche........

The best thing is taking legal advice, which we is what we are doing from a Spanish solicitor.

Basically the advice is become non resident, transfer/sell off what we want to, then when everything is done, dusted and sold/transferred over to our son/daughter become resident again in a couple of years time. (if we feel the need)

bobd22

Yep Dom been there done that just thought I would try it other way round so far I can't see what she found to moan about to be honest

cricketman

I thought you were in your 40s/50s? Very early to start transferring assets to your children!

Fred James

I really don't understand your problem with this.

If she didn't live there you would still have to pay the tax and if it was your property in Spain that you used for 6 months and she used for 6 months you would still have to pay the tax on the Spanish property.

The fact that she lives there is completely irrelevant. If you were a Spanish tax resident it is a second property, irrespective of where it is located and you would pay tax on it whoever happened to be using it.

I think you just need to accept that and get on with the rest of your life as it isn't going to change.

Incidentally the WFA is taxable in Spain if you are a resident. If they made it taxable in the UK there probably wouldn't be an issue with it.

Anyway can we get back to the UK WFA rather than worrying about taxes in Spain. PM me if you want to discuss the tax issues further.

bobd22

Fred I do accept it I answered in depth a question that someone asked one of the points I mentioned was when I bought in Spain I wasn't aware non residents would apply to my uk property should I become resident, as I think you mentioned a while back was the case yourself. I don't agree with it but when required I will have to pay it. WFA allowance again I have said I never expected but as I have tried to also say I believe there may be some that will miss it depends how well off one is.

jackytoo

You will always miss it, even if you used it to buy a case of good wine

Fred James

Or 200 bottles of Lidl's finest

bobd22

As I won't get it just as well my palate can cope with the Lidd'ls stuff

me me

Yes that is right.

But what I wrote was only the solicitors advice, not that we were actually doing it, we would only have to do that if we were thinking of becoming Spanish residents again, but that is another matter entirely.

Though the information might be useful for other expats, who are worried about hacienda getting its hands on their wonga.

Domino

I thought it was Award Winning Finest

scampicat

Quite right, my husband paid tax to the UK on his Teachers' Pension all the time we lived in Spain.

We are now back in the UK and receive the Winter Fuel Allowance.

My own take is that expats should get CONTRIBUTORY Benefits, such as State Pension and certain sickness Benefits, and Disability Benefits whether contributory or not. I thought this when I lived in Spain, I haven't changed my mind because I have returned.

I am not happy about other non-contributory Benefits being paid out to expats, neither am I happy with means-testing them.

I didn't expect to be eligible for a UK bus pass in Spain, or UK Housing Benefit, so why should I expect a UK WFA?

scampicat

Absolutely,me too. We never thought we would sell the house. Couldn't believe our luck.