Overseas property gifted from parents

[HannahS]

Hi,

I hope someone here can help, or at least point me in the right direction to find out more.

My parents gifted me and my siblings their property in Cyprus in the previous tax year, which was then sold in this tax year and the proceeds split equally (£74k each). They are non-dom but we are all UK residents.

Do any of you know if I need to declare the acquisition of this on a self assessment form this year, and then next year declare the income from it? The property value did not increase between it being gifted and sold. Also, will there be any tax to pay on this (capital gains or income), apart from potential inheritance tax should the worst happen?

Thanks in advance!

[AGoodman]

No need to declare the receipt of the property. I don't believe you have any obligation to declare the sale if there is genuinely no net gain on the sale. If you have to file a return anyway then you will need to mention the disposal in the capital gains pages.

You haven't mentioned your parent's residence status. If they are UK resident then they will likely have to declare the gift as a capital gain (the gift is treated as a deemed disposal at market value).

[HannahS]

Thanks very much for your help!