We are currently tax residents in Spain and have sold our house and completing at the Notary in a couple of weeks.We have the certificate from the tax office so that the 3% wont be deducted.
We now think that we are going to return to England and have seen on a previous thread that as long as all the profit from the house in Spain is re-invested in our only new house in England,then there will be no CGT to pay.
Can you just answer me a couple of questions.
1. If we move back to England in September, would we become tax residents in UK from then or in January 2011,being the new tax year in Spain.
2. If we rent for a while in England,and then buy in the next tax year i.e.June 2011,the accounts that we would have done for the period Jan 2010-Dec 2010 would only show the sale of the property.
Do we have to then have accounts done in Spain (even though we will be tax residents in England by then) to show that we have re-invested all the CGT on buying a house in England in tax period Jan 2011-Dec 2011.
Hope you understand this!!