International Property

[arjunb88]

I have just come into the understanding that international property should be declared to HMRC, and as of Sept 2017 they will know automatically anyway.

My parents own a property in Europe, are UK home owners and UK residents.

They intend to gift me the property and actually had decided before I became aware of the declaration necessity. What are their capital gains implications if they are gifting to myself?

I will have to declare this, I am aware, but I will be making no rental income abroad.

[maths]

You do not state whether you are UK resident (but i assume so) or whether you and your parents are UK domiciled or not.

Assuming all are resident and domiciled then on the gift a UK capital gains tax charge may arise on any gain (as well as a tax in the country where the overseas property is located); double tax relief will be available.

No private residence relief will be available unless parents lived in it for a period.

[arjunb88]

what are your thoughts, based on my initial post, on needing to declare the property if we are not earning any income on it? it simply sits there as a holiday home.

[arjunb88]

Sorry,

yes all parties are UK residents.

[AGoodman]

If your parents make a gain on the gift (treating it as a sale at current market value) then they will likely have to declare the gain on a self assessment return. This won't be necessary if the gain (together with any others) is less than their collective annual exemption (£22,600 assuming they are joint owners of the property).

If it has never been rented out then there is no need to declare income and so no other need to declare it. There is no general duty to declare ownership of foreign property.

[maths]

This won't be necessary if the gain (together with any others) is less than their collective annual exemption (£22,600 assuming they are joint owners of the property).

And the consideration per person does not exceed 4 times the annual exempt amount (4 x 11,300).