Can anyone tell me if you have to pay capital gains tax at 40% even if you are a lower tax payer or have finished work and do not pay tax. Also if you have made a loss on a property in Spain can this be off set?

Sandra, CGT is paid at your marginal rate - i.e. if you don't pay tax at all, the first £5k-ish of CGT is tax free, the next slice at 10%, the next slice at 22% and the rest at 40%. This is after you've taken off the CGT allowance and any taper relief. If you have made a loss in Spain I think you can offset it against gains elsewhere, but I'm sure there will be caveats and complexities, so best ask an accountant about this one.