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lesley 1955
08-03-2010, 07:24 PM
My partner and I split up 2 years ago , he stayed in Spain and I returned to England, the house is for sale and we will be splitting the proceeds between us ie 50% each. He will then reinvest his share in another property in Spain whilst I will bring my share back to England.

As I understand it if he reinvests his share within 2 years he will not pay tax whilst as I am now non resident and not reinvesting in a property in Spain or here in England I will have to pay 19% tax.

He has been told that as it would be difficult to confirm if we were splitting the proceeds 50% each that it is likely the whole amount would be taxed at 19%.

I would like to know which one of us has the correct version should we proceed with the sale and the split of the proceeds as above.

Many Thanks
Lesley

Lawbird Lawyer
08-04-2010, 09:21 AM
Hi Lesley

You are right.

He needs to reinvest the sales proceeds (his 50%) within the next 2 years in another main residence i.e. one located in the U.K. It's a roll-over relief on CGT.

You, being non-resident, will be liable for 19% of CGT on the profit made on your 50%.

Similar queries have been replied to over the years in our Taxes (http://belegal.com/forums/forumdisplay.php?f=11) sub-forum. You may want to check it out.

Sincerely
Raymundo Larraín Nesbitt

Unregistered
08-04-2010, 11:18 PM
Thanks very much for the confirmation
Regards
Lesley

Lawbird Lawyer
08-05-2010, 08:07 AM
You are welcome Lesley.