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Hello guys
I have double citizenship, UK and Italy. I inherited from my parents about 25 yrs ago a house in Italy, shared with my brother. We rented it and paid uk taxes on it, i.e. difference between uk and taxes paid at source.
Now my brother wants to sell, what type of taxes would I have to pay in UK? Capital gain? And how would the be the original value ascertained?
Do you have experience of a similar situation?
Thanks
Franco
Yes, CGT is the tax in point for you. As far as the original base cost is concerned, the answer is really the best information you can find. In the UK, there might have been a probate value, so anything similar in Italy? Joint ownership potentially makes valuation of your interest slightly non-routine, I suspect - probably not 50% of the whole.
If the amounts are large, it might be worth taking tailored advice.
This is only if you decide to bring in the proceeds in the UK, isn't it? Can't you leave the proceed in Italy and pay Italian taxes on the sale? (Genuine question)
Interesting point.Quote:
Originally Posted by Saint-Just
https://www.gov.uk/government/public...sis-2023-hs264
I think there is no sale tax in Italy on houses, taxes are paid by the buyer. Taxes are due in UK, but minus those already paid in Italy.
For a property is tricky. It depends how you find out the value I.e. in year 2000.
Depends on the extent to which you're domiciled and/or resident in the UK but you should get double taxation relief where appropriate.
What I meant is that you might declare the proceeds of the sale as Italian income and get taxed in Italy on that. There is also the fact that it is an inheritance that was delayed by X years, and as such not an income. It could be worth asking a professional as the amount you could save would maybe exceed the fees you’d have to pay them.Quote:
Originally Posted by Franco
If there is no valuation at the time of inheritance then you'll have to estimate the market value at that time. HMRC actually offer a free valuation service, but how useful they are with a property abroad I don't know.
https://www.gov.uk/capital-gains-tax...lue%20instead.
It’s solely a check of your own valuationQuote:
Originally Posted by adigra
Only if the OP is non domiciled in UK does remittance apply in my understanding. Beyond that it is the gain when the profit is made for UK residents despite the asset being abroad.Quote:
Originally Posted by David_D
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