How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3125
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I am preparing the 2014/2015 self assessment.My client

Customer Question

I am preparing the 2014/2015 self assessment.My client has just informed me that he became non resident 5.4.2014, so for 2014/2015 he is a non UK resident. He has resided in Spain for several years now, with family and children all going to a spanish school. He remained a UK resident purely because his work was with a UK employer and his total days to UK per annum automatically qualified him as a UK resident. Now his employment has ceased August 2014 and he only spent a total of 30 days in the UK, half of which were workdays he is no longer a UK resident and would be deemed a spanish residentI am aware that he does not need to report any capital gains on shares disposed of in UK companies, unless he return within five years of leaving. This will be reported in Spain. (their CGT rates are higher, but he is aware of this)However i am not clear on the best advice regarding the disposal of a residential property - once his main residence - As this disposal was before 6.4.2015 it does not need to be reported. It was the main residence for the bulk of ownership, but was let out for approx 5 years to 31.3.2014, it was then empty until sold October 2014. As a UK resident, he would apply the PPR and the Letting relief, which would wipe out any capital gain, so no reporting required.However if he is claiming non residency for 2014/2015- does he have to report the disposal in Spain and if so, would he be worse off as he looses his PPR and Letting relief?
Submitted: 12 months ago.
Category: Tax
Expert:  bigduckontax replied 12 months ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
Firstly when he left the UK did he send a Form P85 to HMRC? If he did not then he should do so immediately. Fortunately there is no time limit as to its submission, it is available on the web and can be filed on line. On receipt HMRC will classify him as non resident for the tax year after his date of departure and furthermore split he leaving year into two portions, one resident and the other non resident.
Now how old is your client; this is critical for Spanish CGT purposes?
Customer: replied 12 months ago.
He is 50.
Expert:  bigduckontax replied 12 months ago.
Unfortunate as residents over 65 selling their principal residence of over 3 years are exempt from CGT! He will have to declare this gain for Spanish Tax purposes. I would suggest it be advisable for him to retain the services of a trusted, local professional to steer his case through the Spanish Tax system.
Customer: replied 12 months ago.
Thank you. I am aware of the p85 system. The client has not notifed of his departure I am sure. I will mention this. He has not asked my advice either. He just provided the facts to prepare the tax return due this end of this week! I just didn't feel happy with it and that he could potentially be paying more tax by declaring himself a non U.K. Resident.But Its too late to do the planning now he should have asked the question before disposal or deciding to go non resident. He has no ties to the uk now so I dont think he could even try to declare himself as a uk resident as reading the tax treaty briefly the Spanish authorities would deem him a Spanish resident as he has a permanent establishment there.He made significant gains on his shares too >100k. Spanish cgt is slightly more too!
Expert:  bigduckontax replied 12 months ago.
Yes, it is always the same is it not? They come crying to the adviser when they should have consulted long before. I handled the case of a man who bought a house for his son to live in at uni and the son remained in occupation thereafter. When Dad finally sold it cost him 39K in CGT for the exercise in financial futility!
Please be so kind as to rate me before you leave the Just Answer site.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3125
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 12 months ago.
Thank you for your support.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions