Tax Question

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costakid
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Tax Question

Postby costakid » Sat Dec 28, 2019 9:55 am

I have a friend who lives in the UK, her husband who owned a property in Spain died and she sold the Spanish holiday apartment late last year. She paid her inheritance taxes etc in Spain and has received the 3% back that was held. She owns her own business in the uk but her UK accountant is now saying she has had a capital gain and needs to declare it and pay tax. Is this correct? I didn’t think you could be taxed twice on the same money. She has now cut all ties with Spain and closed all the accounts.

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costakid
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Re: Tax Question

Postby costakid » Sat Jan 04, 2020 4:22 pm

Any thoughts on this anyone?

Beachcomber
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Re: Tax Question

Postby Beachcomber » Sat Jan 04, 2020 5:36 pm

She is liable for the difference between any tax that was paid in Spain and tax that is due on the sale in the UK if it is more. She does not have to pay the whole of the tax twice.

However, if the whole of her retention was refunded presumably there was no capital gain but I think the sale still needs to be declared in the UK even if no tax is payable.

As far as inheritance tax is concerned it may have to be paid twice because in the UK the tax is on the estate and in Spain it is on the individual but she should have paid no inheritance tax in Spain due to the one million euro allowance for spouses and offspring.


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