3936 Buying abroad: what does the UK need to know?

I'm no tax expert, but I know you do not have to declare a UK second home on your tax return - therefore, why would you have to declare a second home which is located in Italy and not generating an income?

Obviously if you were to sell you may have CGT implications and if you rent it out you would have to pay tax on the profits (although works carried out and other expenses could be tax deductable) in Italy or UK.

[quote=neilmcn]I'm no tax expert.....[/quote]

That's our experience too; if you earn from letting the property, then you will need to let Gordon Brown know, but that's all.

Thank you. That seems straightforward.

There are some CGT considerations you should be aware of too (none if you buy again within 12 mths etc..)

Try a search under CGT ;)

I believe, CGT in Italy is only if you sell before five years. If you do and pay Italian CGT then I do not think you pay English as well.

[QUOTE=trullomartinafranca]I believe, CGT in Italy is only if you sell before five years. If you do and pay Italian CGT then I do not think you pay English as well.[/QUOTE]

As with most others here, i am not a tax expert or an expert on European law. My understanding is thus:

1) There is no capital gains tax in Italy. The tax is paid on the rental value of the property every June and December. This is paid irrespective of whether it is rented out or not.
2) As tax has been paid on the rental value in an EU country, there is not a requirement to pay taxes in the UK. Double taxation is not allowed between EU countries. EG: You can import ciggaretes if you have paid EU duty!! As there is no capital gains tax in Italy you have therefore paid it and cannot be charged it in the UK.

This is something It think i have read somewhere. I have also ensured that my house has a chimney for father christmas to come down and have fairies in the bottom of my garden. (Unlike Trulli who has a furry for a husband):D :D :D

Andy

Now look ere Andy! :mad: You may be right?

But whats this mean?

[CENTER][CENTER][COLOR=black][quote=notaio]If you mean INVIM, that was a tax payed by the vendor at the moment of the contract on capital gains in real estate purchases, I confirm it has been abolished.[/COLOR]
[COLOR=black]When you sell you don't pay anytihng.[/COLOR]
[COLOR=black]In only one case you could pay a tax and it is when you sell within 5 years with a gain (plusvalenza) in this case the gain (difference between the 2 prices) should be considered in your annual income. Considere that thanks to the declared price system, gains are rare to be showed.[/COLOR]
[COLOR=black]Another hypotesis is whed you sell a buildible land, in this case you must always consider the gain even if you sell after 5 years from your purchase[/quote][/COLOR]
[/CENTER][/CENTER]
Sounds like CGT to me, 'sell with a gain'

Oh ok Twinkie you can come and play with furry and me! :p

[QUOTE=trullomartinafranca]Now look ere Andy! :mad: You may be right?

But whats this mean? .....
[/QUOTE]

I think that means that if you declare the same price for selling as you did for buying, you don't pay it. It's called cooking the books Trulli and as far as i can tell perfectly legal.

Anyway, Italy as far as i can see tends to be a bad investment as far as short term property values are concerned, so I bought because i liked my house and wanted to stay there. Not selling within five years, so it doesmn't matter!;)

Andy

[QUOTE=neilmcn]I'm no tax expert, but I know you do not have to declare a UK second home on your tax return - therefore, why would you have to declare a second home which is located in Italy and not generating an income?
[/QUOTE]

Mind you, if you buy or sell any property in the UK now there is a tax form filled in by your solicitor (usually) that registers the sale or purchase the Inland Revenue of your transaction, regardless of whether it is your main home, second home, buy to let or whatever. Over time they will have a complete record of all property owned by you whether or not it need to be declared on your return.

UK house purchases have always been registered with the taxman whether you do it yourself or via a solicitor. The revenue stamp was a requirement on unregistered deeds and is a requirement in the land registry. This is a stamp duty matter. From my dealings with the stamp duty office it would seem they have no connection to any other part of the IR and there is no cross referencing.

[quote=widow twanky]I think that means that if you declare the same price for selling as you did for buying, you don't pay it. It's called cooking the books Trulli and as far as i can tell perfectly legal.

Anyway, Italy as far as i can see tends to be a bad investment as far as short term property values are concerned, so I bought because i liked my house and wanted to stay there. Not selling within five years, so it doesmn't matter!;)

Andy[/quote]

As I said my darling Andy you may be right, I wasn't sure exactly what notaio meant. Can't he feel his ears burning? :D

There is no more under declaring on urban properties.
[QUOTE]notaio 3) The new system of the declared prices it's only about urban houses, it doesn't apply to fabbricati rurali.[/QUOTE]

We don't intend to sell ours either! :p

Will Notaio feel his ears burning? No. He wont feel his ears burning! He's full of dreams, and romance, but no common sense! He just sits thinking about stupid things- like do fish get thirsty? Or he wonders whether if you tie buttered toast to the back of a cat and drop from a height, what would happen?

Andy

PS: Notaio was wondering what pantomime was like and who widow twanky really is. So from now on i will try to post in character!!!!

By the way, here's a family phot of Wishy Washy, me (in the middle) and Aladdin.

That's you Andy?

..........oh no it isn't!

Oh yes it is! :D

He's behind you! ;)

Time to decamp to the Circolo........I foresee a new 3 word story (!)