Thoughts from abroad

I have some clients from Majorca a husband and wife. Let’s call them Don and Maria though those aren’t their names.

They retired to the UK around ten years ago but keep a holiday home on the island which is not rented out.

Their main sources of income are a UK rental property and various pensions and financial investments in the UK and Spain.

As a result of the new legislation limiting the scope of the remittance basis they have an unusual problem that has not yet been identified or analysed.

Arising or remittance basis

The area to focus on here is their income from Spanish sources as this must now either be taxed on the arising basis which will be a costly administrative exercise even if the tax position is broadly neutral or on the remittance basis.

At the moment they...