swinbc

Has anyone seen any feed back 're the model 720' or was it just another storm in a tea cup and yet another money spinner for the financial advisors taking advantage again?

snikpoh

What feed back were you expecting - none was planned!

Now, if you fail to declare something, they will know about it and can question you further.
Also, if the value changes by 20k or more in a year, a new declaration must be made - I'm sure they will check. For example, if you have a house valued at over £200k and prices go up in UK by over 10% in the year, then you must make a new declaration.

[or have I got it wrong?]

EsuriJohn

Yes you have got, it wrong.

CapnBilly

You really don't want any feedback, as it will be a registered white envelope, and then you should be afraid, very afraid.

But seriously, there have been reports that you have to report if your assets fall by €20,000, not just increase. It has actually been reported on an IFA site (theoretically based on advice from an a large accounting firm in Barcelona), but I don't believe thats correct as far as I can see, but I am sure there will be a lot of froth around it in February/March. They actually said the law had changed, but I can't see any changes.

You do have to report if you sell a property, and if you were authorised signatory of an account that you have lost during the year.

Esurijohn is correct, as I think the sun must already be over the yardarm where Snikpoh lives. The reporting on property is the purchase price (except if you sell when you have to report the sale and the sale price). You could have to report it if the pound strengthens, but that certainly won't happen this year, and is debateable for next year.

Fred James

Yes an increase of 20k in any one asset type will require a new declaration but that will not normally apply to a property as the value declared is the price you paid so that won't change.

Domino

am I right in saying that the Hacienda will be in touch with HMRC about the way house prices are moving and will make necessary adjustments when they come to evaluate the asset value at some point later ??

what happens if someone had just come into an inheritance and reported it as being over the 50k asset class limit has now spent that money in the purchase of a house in Spain ??

jimenato

They will have to pay IHT.

crookesey

As a retired IFA I have (had) a good knowledge of the UK's rules and regulations, and how to legally mitigate most possible tax charges. I recall one of the reasons for my lifetime ban from the Expat Forum was to question a mod who was bragging about sorting his wife's pension (s) out. He based his figures out on the basic state pension, and ignored any SERPS benefits, he called me a liar when I told him that my state benefits were £8,300 p/a and my contracted out benefits £3,000 p/a, the actual total can be £13,250 p/a, so stuff the stupid pillock.

If it costs you a few quid please appoint someone who knows the Spanish system inside out, you know that it makes sense. My (our) main wealth is in property, equities and cash deposits including ISA's, if there is someone out there who knows their way around the Spanish taxation system, I'm all ears.

Fred James

No, as I said the Spanish tax law clearly states that the value of the property for tax purposes is the purchase price.

This is not something new, it has always applied with regard to wealth tax for many years.

Domino

thanks Fred

swinbc

So if I have spent some of my assets which I declared over the past 12 months and they now fall beneath the declaring threshold I do not have to make a new declare , is that what you are saying?
My gestor said that I would need to but when I questioned it and said it was only an increase that had to be declared he back off!! Still all very vague!!

chopera

If you have sold assets then I imagine you need to declare that to Hacienda anyway. The 720 declaration is a "rolling" declaration - you don't have to do it each year unless your assets' value changes by a certain amount. So if you don't make a declaration this year they assume you still have the same assets you declared last year. Therefore it would probably be a very good idea to remove the sold assets from the 720 declaration anyway, although I'm not sure whether this means you can now remove all the assets from the declaration if their value has fallen below the threshold. The risk iun doing that is they migh think you've sold all the assets and chase you for CGT on them all.

Fred James

As far as I can see from the guidance issued, if you dispose of a particular asset (previously declared) in its entirety then you declare the disposal.

You declare any asset (already declared) that has increased in value by more than 20k and you declare any new asset group not previously declared if is now worth over 50k.

There doesn't seem to be any way to declare that an asset is now worth less than 50k.

When the form was introduced last year there was a considerable amount of discussion and guidance issued but that of course, by definition, was for a first declaration. No doubt as we get closer to the deadline, which is March 31st, more advice and guidance will be issued.

Lospacoshombre

Anecdotally, I have heard several wealthy Brits selling up and moving back to the Uk. I personally know 3 people moving back, because on sale/inheritance of assets in the Uk, they are not prepared to pay high Spanish tax rates.

I personally was moving to Spain, I sold my Uk property, bought a villa, but I am now re planning to live less than 183 days in Spain and over 90 days in the Uk, I now have to buy another house in the UK!!!

que sera

al

CapnBilly

Well, here we are again, a year has passed, and its still a mess, with unclear explanations, and guidance that contradicts the law.