Quick capital gains tax question
Apr 25th 2013, 6:55 am
#1
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Quick capital gains tax question
Quick question, I hope....
I have land with a house on it, where I'm currently registered as living.
If I sell half of my land (the half without the house) and buy another house in Spain with the proceeds then will I be liable for capital gains tax even though the profit will be re-invested in another Spanish property?
Cheers,
Bill
I have land with a house on it, where I'm currently registered as living.
If I sell half of my land (the half without the house) and buy another house in Spain with the proceeds then will I be liable for capital gains tax even though the profit will be re-invested in another Spanish property?
Cheers,
Bill
Apr 25th 2013, 7:08 am
#2
Joined: Jun 2006
Location: Granada Costa
Posts: 10,902
Re: Quick capital gains tax question
That only applies when you sell your habitual home and buy another habitual home with the proceeds.
What you are suggesting doesn't seem to meet that requirement.
What you are suggesting doesn't seem to meet that requirement.
Apr 25th 2013, 10:05 am
#3
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Re: Quick capital gains tax question
Thanks, that's about what I thought.
However, if I were to sell some land and buy another house, then make that new house my main place of residence, would that get around the CG tax?
However, if I were to sell some land and buy another house, then make that new house my main place of residence, would that get around the CG tax?
Apr 25th 2013, 10:43 am
#4
Joined: Jun 2006
Location: Granada Costa
Posts: 10,902
Re: Quick capital gains tax question
No, as I said the funds you reinvest must come from the sale of your habitual (ie you have lived in it for 3 years) residence.
Apr 25th 2013, 10:46 am
#5
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Re: Quick capital gains tax question
Oh well. Thanks for the info.
The frustrating thing is that there isn't really any capital gain - any increase in the value of my land will be offset by the increase in the price of the house I want to buy.
Just goes to prove that HPI only benefits the taxman.
The frustrating thing is that there isn't really any capital gain - any increase in the value of my land will be offset by the increase in the price of the house I want to buy.
Just goes to prove that HPI only benefits the taxman.
