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Thread: Taxes and splitting proceeds

  1. #1
    Junior Member
    Join Date
    Jun 2010
    Posts
    2

    Default 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

  2. #2
    Senior Member
    Join Date
    Oct 2008
    Location
    Marbella
    Posts
    1,095

    Default

    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

  3. #3
    Unregistered
    Guest

    Default

    Thanks very much for the confirmation
    Regards
    Lesley

  4. #4
    Senior Member
    Join Date
    Oct 2008
    Location
    Marbella
    Posts
    1,095

    Default

    You are welcome Lesley.

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