Anyone know anything about this!
The tax reform of 2015 adds an exception whereby people over 65 years of age will not pay taxes after the sale of a secondary residence if the benefits obtained are destined to "constitute a lifelong income with a period of six months insured in their favour".
Just wondered if it meant if I sold my second property and invested it into a pension type financial arrangement I might not have to pay Capital Gains! It is my pension anyway!
TAX REFORM 2015
TAX REFORM 2015
Torrox Costa "El mejor clima de Europa"
Re: TAX REFORM 2015
Just to say. In case people do not know that if you sell your second home and buy an annuity you do not have to pay Capital Gains on the sale of your second home. I did not know that, not that I will be taking it up. However...................
Torrox Costa "El mejor clima de Europa"
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Re: TAX REFORM 2015
You already seem to know the answer, so what is your question?
Sid
Sid
Re: TAX REFORM 2015
Cid - you might be able to elucidate - does the annuity have to be a spanish one? or in an EU country? or for instance post Brexit UK?
Thanks
Thanks
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- Andalucia Guru
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Re: TAX REFORM 2015
Not sure, I would expect it to have to be based in an EU Country, like many other tax rules.
Of course, after Brexit the UK will not be in the EU and that will affect a huge number of tax rules, especially IHT and CGT.
Sid
Of course, after Brexit the UK will not be in the EU and that will affect a huge number of tax rules, especially IHT and CGT.
Sid
Re: TAX REFORM 2015
I put it up on the site before I knew the answer, but as no one replied I googled and got the answer. I presume that is alright. Also as no one had answered I wondered if anyone knew so I put up the answer for those who didnt know. I presume that was alrightEl Cid wrote:You already seem to know the answer, so what is your question?
Sid
Delete if you wish.
Torrox Costa "El mejor clima de Europa"
Re: TAX REFORM 2015
Gasman wrote:Cid - you might be able to elucidate - does the annuity have to be a spanish one? or in an EU country? or for instance post Brexit UK?
Thanks
Just to say at the moment it is any EU country which of course includes the UK.
However hopefully post Brexit there will not be any CG to pay to Spain.
Torrox Costa "El mejor clima de Europa"
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- Andalucia Guru
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Re: TAX REFORM 2015
It could get very complicated depending on the deals done by the UK with the EU after Brexit.
Roll over relief on a house owned by a tax resident should continue if reinvested in a home in the EU/EEA. After Brexit the UK may not be in either, so it would not apply.
I don't understand your last paragraph. After Brexit, the CGT rules may change which might mean you pay more CGT and also the IHT rules will be seriously affected as the new €1m allowance will not apply to children who live outside the EU/EEA.
However, it might be easy to agree between the "new" UK and the EU that as the UK has agreed to exchange of financial information that it is not affected.
Nobody knows at the moment and of course there an increasing chance that Brexit may never happen. Who knows?
Sid
Roll over relief on a house owned by a tax resident should continue if reinvested in a home in the EU/EEA. After Brexit the UK may not be in either, so it would not apply.
I don't understand your last paragraph. After Brexit, the CGT rules may change which might mean you pay more CGT and also the IHT rules will be seriously affected as the new €1m allowance will not apply to children who live outside the EU/EEA.
However, it might be easy to agree between the "new" UK and the EU that as the UK has agreed to exchange of financial information that it is not affected.
Nobody knows at the moment and of course there an increasing chance that Brexit may never happen. Who knows?
Sid
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