Reporting of Assets Outside Spain and UK Rental Income.

Just read this on private circulation news sheet:-  

Hacienda on Wednesday released some information about the World Asset Declaration. According to the only report I could find - Over 131,000 Spaniards admitted that they held property, accounts and investments abroad worth 87,700 million euros. As to whether many (or most) of those Spaniards were in fact 'residentes extranjeros', we shall have to wait and see...

Perhaps the tax office asked him where had all that money come from in his account, and it all came out......

Bit of misreporting by the paper IMHO. He's not the victim of the asset declaration, well he is in that that he now has no options, as they know he had a property, because he declared it on the 720.

What the article says is that he then sold it in January, and his tax advisor has told him, quite rightly, that he will have to pay capital gains tax. He has checked with two others, and they have told him the same. This, as we have discussed many timse in this thread, has always been the case, but people haven't been declaring it. 

So, he is now off to Blighty, which he can do because its only part way through the tax year, and certainly not returning before the end of he year, if at all.

So, if anything, it seems to me that he may have the victim of poor advice, insofar as, his advisor, who presumably completed his 720 (although he may have done it himself) should have warned him of the consequences of selling the property, and that he would need to make himself non-resident to avoid the tax.

Instead, he's just whinging abut it, and blaming the 720. The paper forgets to mention that even if he hadn't declared it, he would have still been liable, but he would probably have failed to declare it. One of the points they highlight is that he doesn't own a property in Spain, but lives in his partners house, but, of course, you don't have to own a property for it to be your main residence.

I think the phrase for it is tax evasion

This is the link too the paper, and you go into the e-version http://www.costa-news.com/latest-news/item/1107-first-victim-of-asset-declaration

Kathyslad,

                           Thanks for (more or less) confirming my assessment of the situation, posted by Camposol.

yipee, I'm alright then!

 Haven't read the full article, but based on the snippet available I would concur with KL - "First victim of bad advice" or "first victim of pure ignorance" may have been more appropriate headlines - and the journo who penned it could come under a similar heading. It says he's lived in Spain 10 years, filed a 720 (therefore he is obviously a fiscal resident in Spain) and yet the property in the UK was his main residence? Doh!

Yup.

Ignorance is expensive...

But if he sold it as a resident, surely he can't be exempt because he decides to be a non resident this year. I wonder how many people have sold their UK house while resident here and done nothing about it in regard to tax.....

Reporting of Assets Outside Spain

I just picked up the Declarations, forms 720, for my wife and myself.   The total entries for both were 12 accounts/properties.  The charge was 85 euros for each of us, excluding IVA. I say 'excluding' as none was include and the receipt the gestor gave me was a 'non IVA one' so put in the 'back pocket.'

I understand 131,000 Declarations were made in Spain, so if the gestors all charged 85 euros, then a total of 11,135.000 euros.  'Not a bad little earner'.

kathyslad -re your post of 24 May-how can going back to the UK to be non resident save him from paying the cgt, he was resident when he sold the house, for the whole of 2012.If I went home to Uk, in 2014 I would still have to pay my tax for 2013 even though I would be non resident.

 He reported the house as as asset on the 720 as the of 2012. He then sold it in January 2013, and his advisor has told him that he will liable for CGT in 2014. If he returns to the UK  to live before the end of June, then he will be non-resident in Spain for 2013.

 If the property had been sold before 31^st Dec 2012, then I would assume CGT would be payable in June (now) 2013

and it wouldn't have been reported on the 720. As I said before, seems to me he was very badly advised. 

Surely a house sale in 2012 would have been reported on the assets form ,completed in 2013 for 2012?

Another thing, if someone had assets eg 100,000 sitting in aUK bank account, which included money from former years, eg house sale, lump sum on retirement etc, wouldn't the tax man want to know where it came from and when;If the cgt and interest hadn't been declared at the time, would he be penalised, even if the assets hadn't originated in 2012. I often wonder this when I see those adverts offering to register someone on the tax system, and claim back years of tax from the uk.

Surely a house sale in 2012 would have been reported on the assets form ,completed in 2013 for 2012?

Yes, you're right. but somehow I don't think it would have been

Another thing, if someone had assets eg 100,000 sitting in aUK bank account, which included money from former years, eg house sale, lump sum on retirement etc, wouldn't the tax man want to know where it came from and when;If the cgt and interest hadn't been declared at the time, would he be penalised, even if the assets hadn't originated in 2012.

Absolutely right, they now have the information to follow that through if they want to.