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Taxes and splitting proceeds
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
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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 sub-forum. You may want to check it out.
Sincerely
Raymundo LarraĆ*n Nesbitt
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Thanks very much for the confirmation
Regards
Lesley
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