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 TaxRobin Your Own Question

TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 14458
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

My father died in Portugal fifteen years ago. He left s

Resolved Question:

My father died in Portugal fifteen years ago. He left his house to my 2 sisters and myself with a life interest for my mother. In May 2014, we had to bring my mother back from Portugal through ill health. For 5months she lived with my sister. My mother paid for carers 3x a day and had an attendance allowance. From September 2014 she has self funded herself in a care home but from this Sept her savings will be at the level where she will not be paying the full amount for the home and the local Council will be paying a contribution to her care whilst at the same time taking both her private and state pension. My sisters and I intend to pay the difference which could amount to £500 per week!
The house in Portugal has now been sold and in Portugal we will have to pay 28% capital gains tax.
One of my sisters lives in Portugal so pays tax there. I am retired and my younger sister retires this year but we both live in England. We have considered leaving the money in Portugal and paying the fees from there, obviously incurring exchange costs.
My question is this, will we have to pay more capital gains tax in the UK?
Submitted: 9 months ago.
Category: Tax
Expert:  TaxRobin replied 9 months ago.

Hello

The tax treaty between the 2 countries states the following:

Article 13 Capital Gains

(1) Gains from the alienation of immovable property, as defined in paragraph (2) of Article 6, may be taxed in the Contracting State in which such property is situated.

(2) Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing professional services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in the other State.

(3) Notwithstanding paragraph (2) of this Article, gains from the alienation of ships and aircraft operated in international traffic and movable property pertaining to the operation of such ships and aircraft shall be taxable only in the Contracting State of which the alienator is a resident.

(4) Gains from the alienation of any property other than those mentioned in paragraphs (1) and (2), shall be taxable only in the Contracting State of which the alienator is a resident.

Yes the UK CGT would apply but on the gain after your allowances.

You are allowed a relief from Double Taxation in the UK based on the amount you pay in Portugal.

Customer: replied 9 months ago.
This is not a plain English response. Why can't you put the article into terms we can properly understand. Also what allowances do you mean? Just our usual £10000 tax allowance? As the money is paying for my mothers care, are there any tax allowances for this? Did you really understand our problem?
Customer: replied 9 months ago.
What is double taxation?
Expert:  TaxRobin replied 9 months ago.

Double taxation is when 2 countries tax you on the same amount of income.

Expert:  TaxRobin replied 9 months ago.

If you sell a property over seas you will be taxed in the UK if you get more for the property than your cost in the property (in your case the value when you received it from your father).

TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 14458
Experience: International tax
TaxRobin and other Tax Specialists are ready to help you

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