Yes Jackie, that's quite clear and I did that 10 years ago when I first left the UK. The problem at the moment, which seems to be affecting a large number of UK expats in Italy, is that the Italian tax authorities are seeking to levy tax on income derived from UK property over and above the sum levied by the Inland Revenue (which does not count as double taxation). I pay tax in the UK on my UK property rental income, and told my Italian accountant about this when I first made a tax declaration in Italy. They told me that as tax was paid at source in the UK, that it was not relevant to my Italian declaration. Unfortunately, this may have been incorrect, and the Agenzie delle Entrate have recently sent out letters to 6,000 Italian residents with property in the UK and France. The implication of the letters is that a supplementary tax needs to be paid in Italy on UK property income. The legislation seems to be blurry in this area, and four different accountants have given me four different interpretations of how to deal with it. If anyone in this community is experiencing similar problems / has already resolved them, I'd love to hear from you!
Dear Holmesro, I was wondering how your situation worked out in the end? I received a similar letter myself a couple of weeks ago, and am not sure what to do. I have asked 4 Italian accountants to date, and they have all given completely conflicting advice, while admitting that they know nothing about this part of Italian tax law. I'd be very grateful to find out if you made any better progress in ascertaining the rules than I have so far!
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Yes Jackie, that's quite clear and I did that 10 years ago when I first left the UK. The problem at the moment, which seems to be affecting a large number of UK expats in Italy, is that the Italian tax authorities are seeking to levy tax on income derived from UK property over and above the sum levied by the Inland Revenue (which does not count as double taxation). I pay tax in the UK on my UK property rental income, and told my Italian accountant about this when I first made a tax declaration in Italy. They told me that as tax was paid at source in the UK, that it was not relevant to my Italian declaration. Unfortunately, this may have been incorrect, and the Agenzie delle Entrate have recently sent out letters to 6,000 Italian residents with property in the UK and France. The implication of the letters is that a supplementary tax needs to be paid in Italy on UK property income. The legislation seems to be blurry in this area, and four different accountants have given me four different interpretations of how to deal with it. If anyone in this community is experiencing similar problems / has already resolved them, I'd love to hear from you!
Dear Holmesro, I was wondering how your situation worked out in the end? I received a similar letter myself a couple of weeks ago, and am not sure what to do. I have asked 4 Italian accountants to date, and they have all given completely conflicting advice, while admitting that they know nothing about this part of Italian tax law. I'd be very grateful to find out if you made any better progress in ascertaining the rules than I have so far!