I think that if you pay much
Submitted by porkpie on Wed, 02/29/2012 - 18:47In reply to A newbie all over again! by Annec
I think not
Submitted by Ram on Thu, 03/01/2012 - 02:57In reply to A newbie all over again! by Annec
I am no expert but can only
Submitted by getsett on Thu, 03/01/2012 - 06:42In reply to A newbie all over again! by Annec
I am no expert but can only go from experience. When we sold our flat in Italy there was no capital gains tax payable in Italy as we had owned it for more than 5 years. However, as we were tax resident in UK then we had to pay UK CGT. Do you mean that you have owned the property for less than 5 years?
Thank you for your
Submitted by Iain Shirlaw on Sat, 03/03/2012 - 05:34In reply to I am no expert but can only by getsett
Thank you for your replies. I have owned the house for more than 5 years. However, by a quirk of the Italian law this is irrelevant if you rebuild a house - the 5 years starts from the date the house was finished - in my case 2011. I understand about the capital gains situation in the UK. As I said in my original post the capital gains is higher in Italy due to not having a capital gains allowance in Italy.
Well ................
Submitted by alan h on Thu, 03/01/2012 - 07:06In reply to A newbie all over again! by Annec
Ram said "The capital gain is due in Italy, therefore paid in Italy, In this case it has nothing to do with the UK, or where you are fiscally resident, as it is not a cross border tax - AFAIK" - ---------- However, this is a quote from the HMRC website, about CGT “Most assets are liable to Capital Gains Tax when you sell or dispose of them. These include shares, property, business assets and personal possessions - whether they're in the UK or overseas. But some assets are exempt – such as your car and, in most cases, your main home.” So you probably are liable if you are a UK taxpayer
its getting interesting
Submitted by Ram on Thu, 03/01/2012 - 07:41In reply to A newbie all over again! by Annec
but - as the poster is UK resident, then his Italian house cannot be his main home, but a second home, and not exempt. By paying any capital gain direct to the notaio at the point of sale he would benefit from the preferential 20% tax rate. However, you can opt to pay the tax yourself included in your tax return at whichever rate is applicable to you. Some people - choose this route, leave the country and hope never to be discovered.
In reply to A newbie all over again! by Annec
Depends on what you mean by rebuild. A new house on a piece of land incurs plusvalenza from the moment the build is finished. A restoration does not necessarily incur plusvalenza unless you knocked it down and started again. IT depends on how much work you did to the house, and whether it was substantially enlarged.