Join Talk Quesada
Welcome to Talk Quesada! My name's Alex and this is my website all about Ciudad Quesada in Spain. Talk Quesada is free to sign up and use so register below!
UK second home stamp duty
Re: UK second home stamp duty
by PGA » Tue Oct 30, 2018 7:20 pm
Paulr wrote:Hi PGA,
We sold our home in the UK in 2016 and, from the proceeds, bought our main residence in Spain and a smaller property in the UK. If we hadn't bought the property in Spain, so that the smaller one in the UK was our main and only residence, the SDLT would have been £1,300. However, as the UK property is classed as our second residence, the SDLT on that purchase was £7,000 - a significant difference! Fortunately, my wife is very good at this sort of thing and had budgeted for it, but as you say, it could be make or break for the plans of some people.
You're spot on with your comment, "the knock-on effect it has on foreign property owners perhaps hasn't been immediately obvious and the absence of many articles on the matter online suggest it hasn't been widely observed." However, HMRC's amnesty on UK tax residents who haven't declared ownership of, and/or rental income from, their overseas properties expired in September this year - and, unlike Spain's tax authorities, which only goes back 4 years to retrospectively collect unpaid taxes, HMRC can go back up to 20 years.
https://www.gov.uk/government/news/hmrc ... ore-assets
Best wishes for making your sums work,
Paul
Interesting stuff Paul.
So even though your UK sale and purchase ran consecutively from one sale to one purchase, the concurrent Spanish purchase then cause the UK smaller property to be considered a "second property"? I am interested as to how they are defining "main home" as per Shiva's post earlier. It does not seem to be tax-residency as the basis of it.
If you own no property in the UK I can see the case for saying your Spanish owned property is the "main home" as you have no other. However, if you sell in the UK, buy in the UK and buy in Spain, what prevents you nominating the UK purchase as a main home? If not, what is the difference to any Spanish property owner selling their UK property to buy a new one and be stung with the second home stamp duty?
I will have a chat with my own accountant but feel its more likely a tax lawyers area.
- PGA
- Posts: 1384
- Joined: Mon Mar 19, 2018 8:36 am
- Gender: Male
Re: UK second home stamp duty
by PGA » Tue Oct 30, 2018 7:23 pm
"However, as the UK property is classed as our second residence"
I guess this is the question - what made it be classified as this?
If you had bought the UK property before the Spanish property you would have not been subject to the additional 3%. I guess that is the trap that I am concerned by and others should be aware of, especially when many will be reliant on a UK house sale to buy in Spain. To avoid the additional SDLT you need to buy any UK property you intend to before buying the Spanish property. Doing so the other way around can cost you dearly now.
I guess this is the question - what made it be classified as this?
If you had bought the UK property before the Spanish property you would have not been subject to the additional 3%. I guess that is the trap that I am concerned by and others should be aware of, especially when many will be reliant on a UK house sale to buy in Spain. To avoid the additional SDLT you need to buy any UK property you intend to before buying the Spanish property. Doing so the other way around can cost you dearly now.
- PGA
- Posts: 1384
- Joined: Mon Mar 19, 2018 8:36 am
- Gender: Male
Page 2 of 2 • 1, 2
12 posts
• Page 2 of 2 • 1, 2
Related topics
-
- Similar Topics
- Replies
- Views
- Last post
-
-
Duty Chemist
by mondo » Sun Apr 30, 2023 6:49 am in Where to buy things in and around Quesada - 2
- 110
-
by mondo
Mon May 01, 2023 8:22 am
-
Duty Chemist
-
-
Duty free allowed into the UK from Spain?
1, 2, 3 by Ireneinveraray » Thu Aug 10, 2023 8:21 pm in Quesada general discussion - 25
- 967
-
by HarvHar2018
Wed Aug 16, 2023 12:18 pm
-
Duty free allowed into the UK from Spain?
-
-
Need heavy duty zip repaired/replaced
by Maglorix » Tue Aug 29, 2023 5:15 pm in Quesada general discussion - 3
- 144
-
by Maglorix
Wed Aug 30, 2023 9:10 am
-
Need heavy duty zip repaired/replaced
-
-
Care Home, Rest Home, Retirement Village
by Renate » Mon Apr 03, 2023 2:30 pm in Recommended Tradesmen and Companies - 2
- 299
-
by Renate
Mon Apr 03, 2023 8:11 pm
-
Care Home, Rest Home, Retirement Village
-
-
Heavy duty ladder multi function SOLDERING
by Chrisdee » Wed Jul 05, 2023 3:37 pm in Items for sale in Quesada and surrounding areas - 0
- 153
-
by Chrisdee
Wed Jul 05, 2023 3:37 pm
-
Heavy duty ladder multi function SOLDERING
Return to Banking and finances
Who is online
Users browsing this forum: No registered users and 4 guests
Login
Find in Quesada
Quesada pages
Quesada discussion
- Quesada general discussion
- Banking and finances
- Broadband, Wifi, Phone and TV
- Buses and public transport in and around Quesada
- Driving to Spain / Car hire in Spain / Buying and owning a car in Spain
- Fiestas in Quesada
- Flights, baggage and airports
- Health services in Quesada
- Insurances and wills in Spain
- Items for sale and wanted in and around Quesada
- Interesting articles about Spain
- Jobs and careers in Quesada
- Lost and found in Quesada
- Market days
- Places to go for free Wi-Fi
- Recommended restaurants / cafes / bars
- Recommended Tradesmen and Companies
- Residency in Spain: padron, residencia and passport advice
- Safety / security information and property in Spain hints and tips
- Taxes in Spain: Suma, NIE and general tax advice
- Taxis in Quesada
- Things to do and places to go in and around Quesada
- Utilities in Spain: Electric, gas and water recommendations and advice
- Weather in Quesada
- Where to buy things in and around Quesada
- Where to hire things in and around Quesada
Properties discussion
Businesses and places in Quesada
- Bars and pubs in Quesada
- Beaches near Quesada
- Beauticians / Beauty salons in Quesada
- Bedding and soft furnishings shops in Quesada
- Butchers in Quesada
- Car dealers in Quesada: new and used car dealers
- Car garages, mechanics, tyre fitter centres in Quesada
- Car hire in Quesada
- DIY / Bricolage / Ferreteria stores in Quesada
- Equipment hire centers in Quesada
- Estate agents in Quesada
- Furniture shops in Quesada
- Garden centres and garden furniture shops in Quesada
- Golf Courses in Quesada
- Grills / gates / metal items shops in Quesada
- Hairdressers in Quesada
- Hotels, guest houses and bed and breakfasts in Quesada and nearby
- Internet service providers that cover Quesada
- Launderettes / dry cleaners in Quesada
- Markets in Quesada
- Medical / Health centers in Quesada
- Pet shops in Quesada
- Pharmacies / Chemist shops in Quesada
- Restaurants in Quesada
- Shopping centres in Quesada
- Sports centres and gyms in Quesada
- Supermarkets in Quesada
- Swimming pool services in Quesada
- Town Halls (Ayuntamientos) in Quesada
- Waterparks/Aquaparks in Quesada
- TalkQuesada » Board index
- The team • Delete all board cookies • All times are UTC [ DST ]
- Our other websites:
- Costa Blanca forum
- Costa Calida forum
- Costa del Sol forum
- Costa de Almeria forum
- Costa de la Luz forum
- Costa Dorada forum
- Costa Brava forum
- UK forum
- Jobs in the UK
- Our policies:
- Privacy policy
- User agreement
- Content policy
- Website created and operated by JSM Forum Websites