UK inheritance tax

Hoping someone has had a similar experience and can give me a recommendation of a company that can help.

I inherited a property in the UK a couple of years ago. Under UK law, you pay inheritance tax on a sliding scale, which reduces year on year - after 7 years is 0%.

I am a resident / tax resident of Spain.

My gestoria advises me that in Spain, liable for about 20% of net gain value of the property, from when you are given it, to when you´ve sold it - but this has nothing to do with the UK inheritance tax side - which I do not know if I am still liable for ?

Struggling find a definitive answer - hopefully someone knows of a firm that has experience with this type of international.

Blevins Franks are good at these tax issues.
Pretty sure that as a Spanish tax resident you will have to pay capital gains tax in Spain. UK tax does not apply.

Azur wrote:Blevins Franks are good at these tax issues.
Pretty sure that as a Spanish tax resident you will have to pay capital gains tax in Spain. UK tax does not apply.

Thanks for that, i´ll look them up.

Don’t sell the house! Keep it for your own use or rent it out. Who knows, you may want to return to the U.K. at some stage in the future.

Mac3blade wrote:Don’t sell the house! Keep it for your own use or rent it out. Who knows, you may want to return to the U.K. at some stage in the future.

I´m not worried about going back to the UK - the main problem is the property is on the NorfolK Broads and about 5 metres away from the water.

After studying Norfolk county councils plan of ´nothing we can do´ - its quite clear that within a few years the property and or access to will be flooded - ergo, get it sold before the climate change literally sinks its worth.

It´s a shame as its a lovely spot and popular to rent too - but the reality is kicking in and properties which are vunerable are not insurable, so path best addressed sooner rather than later.

I worked with a guy who bought a holiday place in Norfolk.....it was flooded out at least 3 times before he had enough and sold it.

I think your tax liability may depend on whether you have any other links to the UK and how long you have been resident in Spain. I'd second Blevin Franks, they are tax specialists.

Sage wrote:I worked with a guy who bought a holiday place in Norfolk.....it was flooded out at least 3 times before he had enough and sold it.

I think your tax liability may depend on whether you have any other links to the UK and how long you have been resident in Spain. I'd second Blevin Franks, they are tax specialists.

I´ve been here for 18 years and tax resident since then, so hoping that may help - but it does appear the UK may well make it difficult for me to negate this. Will just have to see how it plays out. we know the tax goes to a good cause. paying for downing street covid xmas parties and suchlike

Norfolk -Yes - flooded, rebuilt, higher up 10 or so years ago - good for 100 years told at the time. which is probably now 30....but the roads around it are lower, so as a long term / rental out investment, no.

I´ve dropped Blevin Franks an email, so hopefully will hear from them shortly.

Paul Abaco Solicitors in Torrevieja also come recommended by those who have used them. I presume all double taxation treaties have remained in place since Brexit in case you are taxed in the UK.

https://www.abacoadvisers.com/

Bee

Bee wrote:Paul Abaco Solicitors in Torrevieja also come recommended by those who have used them. I presume all double taxation treaties have remained in place since Brexit in case you are taxed in the UK.

https://www.abacoadvisers.com/

Bee

Thanks Bee - I do believe the dual taxation treaty is still in place - Brexit has not changed this.

a useful good read

Do YOU know how the seven-year inheritance tax rule works? Half of Britons don't – but it could save some families a tax bill after they die

https://www.thisismoney.co.uk/money/pen ... xempt.html