ISA CGT and living abroad ISA CGT and living abroad
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  1. #1

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    Default ISA CGT and living abroad

    It’s only just come to my attention that countries such as Spain make ex-pat citizens pay 23% Capital Gains Tax on UK ISA gains. You can also no longer put money into an ISA when you move abroad, which makes sense I suppose.

    Not ideal for me as my plan is to plough away as much as I can in ISA’s and then retire happily in a warmer country hopefully keeping the pot roughly in place.

    Question I have is how would this practically work? Say you plan to move to Spain permantly on the 5th April 2021. You could sell all your shares at the end of March. The buy them all back when your in Spain, and from that date onwards you pay 23% of any gains? Is that correct?

    I suppose the other option is Crypus or Barbados

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    Have you asked your butler? He's paid to GAS.
    Last edited by northernladuk; 23rd November 2020 at 11:40.
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    I'd be more concerned about UK CGT levels next years...

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    Not saying this is 100% correct so do your own research, but worth a read : Avoid Spanish taxes on your UK property | Are. you moving to Spain

    As a tax resident in Spain, a person has to declare all of their overseas assets (over certain levels) as well as the income from these assets. Anything sold, such as a property or investments (ISAs, shares, bonds, etc.), and even a lump sum from a pension which would be tax free in the UK, will be taxable in Spain and this is where there is a potential tax nightmare.

    Our advice is usually to sell before becoming tax resident in Spain, if selling is feasible and practical. If you are eligible to take a tax free lump sum, do so before becoming tax resident in Spain. ISAs are also taxable in Spain and although there are ways to legally avoid taxes whilst holding this type of investment, things can become very complicated.
    So this does suggest selling everything in the UK for the tax free gain, then re-purchasing before you become a Spanish Tax resident would be the best route. I'm not a tax accountant though so as above, best do your own research as I could be talking bollox
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    Quote Originally Posted by northernladuk View Post
    Have you asked your butler? He's paid to GAS.
    Planning on downsizing to a smaller house abroad and give the money to the kids as deposits on houses.

    This country is screwed. Little or no opportunities for youngsters to get onto the UK housing market. I don’t want to get old here as my wife already has arthritis problems, so a move away seems logical.

    Cryprus has better tax laws hence why a lot of ex-pats are there.

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    Quote Originally Posted by Whorty View Post
    Not saying this is 100% correct so do your own research, but worth a read : Avoid Spanish taxes on your UK property | Are. you moving to Spain



    So this does suggest selling everything in the UK for the tax free gain, then re-purchasing before you become a Spanish Tax resident would be the best route. I'm not a tax accountant though so as above, best do your own research as I could be talking bollox
    Thank you. Jesus, they even come after your pension lump sum.

    Anyone have a spare room in this country we can live in for 6 months a year?

    Not sure about tax avoidance measures. Sounds like an overseas bank account would be needed to realise any profits into.

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    Quote Originally Posted by BABABlackSheep View Post
    Anyone have a spare room in this country we can live in for 6 months a year?
    Try Heathrow Thistle hotel - they've got a vacancy

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    Quote Originally Posted by AtW View Post
    Try Heathrow Thistle hotel - they've got a vacancy
    Scooter scooted then?

    Pains me to remember that I have stayed in there a rather long time ago. Was luxury after being in Slough all day

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    Quote Originally Posted by BABABlackSheep View Post
    It’s only just come to my attention that countries such as Spain make ex-pat citizens pay 23% Capital Gains Tax on UK ISA gains. You can also no longer put money into an ISA when you move abroad, which makes sense I suppose.

    Not ideal for me as my plan is to plough away as much as I can in ISA’s and then retire happily in a warmer country hopefully keeping the pot roughly in place.

    Question I have is how would this practically work? Say you plan to move to Spain permantly on the 5th April 2021. You could sell all your shares at the end of March. The buy them all back when your in Spain, and from that date onwards you pay 23% of any gains? Is that correct?

    I suppose the other option is Crypus or Barbados
    you have an ISA that's gained?
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