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Britons urged to apply for tax owed

Britons urged to apply for tax owed

An EU ruling means there is only a month left for British people with second homes in Spain to start reclaiming any tax they have been overcharged on their property.

The Spanish government wrongly charged non-residents selling property in the country twice as much capital gains tax as residents, the European Court of Justice (ECJ) ruled last November.

People with a second home in the country were charged tax of 35% on capital gains they made through selling a property, compared with Spanish residents, who were taxed at a rate of 15%.

The ECJ said any EU citizen who paid the higher rate on a property sold between the beginning of 1997 and the end of 2006 could claim a refund.

So far more than 500 British and Irish homeowners have had the tax refunded, receiving an average of 18,000 euros (£15,000) each.

But the ECJ ruling stated that all claims must be settled by the end of October this year.

Currency exchange broker HiFX and Spanish lawyers Costa, Alvarez, Manglano & Associates, which have been campaigning to help people reclaim the tax, warned that it takes up to three months to process claims.

As a result, it is urging people to submit their claim before the end of July.

If you would like advice on personal tax issues, call us on 01494 790007 or email enquiries@ibblaw.co.uk.