Inheritance tax

rickb Image
05/28/2011 - 14:32

Hi,I have lived in the uk for fifteen years.My parents have assets in italy and some here in the uk. They have the official residence in italy and they are registered as resident there. They do spend some time in the uk and have a house here.My question relates to inheritance tax for both cash deposits and property. Would I have to pay tax twice ie. first in italy and then in the uk if i were to transfer the proceeds here?If I were to "wire" the proceeds to my bank here would the tax man jump on me even once i had paid italian inheritance tax?My parents are confused about all this.Any help would be appreciated thanks.Rick

Comment

I'll have a think.......but............there is NO WAY that you'd pay tax twice. You need to speak with a professional. There are some questions re the amount of time that your parents spend in the UK, S

In reply to by sprostoni

hi thanks for the reply.   Yes i thought the time they spend in uk could throw a spanner in the works. But i have read somewhere that so long as they are anagrafe resident in italy uk domicile restrictions are not relevant anymore. They pay tax on their income in italy.

As I understand it, residency and domicile are completely different - if your parents have a house in UK and were born there then that is where they are domiciled and therefore liable to tax. Residency does not anull domicle. I am no expert and would suggest they speak with an accountant specialising in cross border tax issues. We have never used him, but Michael Murphy is a name that has frequently cropped up on the forum as being someone in the know on these things so may be worth googling him. Good luck.

i've read some docs on the web that state that if they are registered as residing in italy then this overrides the uk domicile even if they are domiciled in the uk. Also there is no such things as anagrafe in the uk, in practice i don't think authorities actually know if one resides there or not..just by looking at the daily mail headlines every day on immigration... :) My dad was born in italy and my mum in the uk.I can see them being taxable for their uk property in the uk but i think that for their italian assets they wouldf pay their tax in italy as that is their fiscal domicile for the italian inps etc etc