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Where Taxpayers and Advisers Meet

Inheritance in Italy transfer to the UK: what documentation?

Antonella
Posts:1
Joined:Tue Feb 27, 2018 11:17 am
Inheritance in Italy transfer to the UK: what documentation?

Postby Antonella » Tue Feb 27, 2018 12:07 pm

Hello,

my enquiry relates to documentation required to accompany the cash transfer of inheritance abroad (EU) for HMRC.

1) am a native Italian citizen, 62, not yet retired, resident AND domiciled in the UK since 1973 and in a Civil Partnership with a native British citizen, since 2010.

2) I moved to the UK aged 18 and have only ever worked and been fiscally registered here, with a UK tax code, NI contributions record and Pension (at 66).

3) My mother (Native Italian citizen and domiciled in Italy all her life) has recently passed away (29th Jan 2018), leaving two apartments.

4) My brother and I are in the process of selling the two properties she left us, to be divided 50:50

5) My share of the inherit[/list]ance should come to around £250,000 and it will be paid into my brother's bank account, in Italy.

6) The amount is below the Italian threshold for Inheritance Tax (€1M), nor, I believe, in the UK, as it is less than £325,000

7) I intend to ask my brother transfer my share to my bank account, here in the U and I intend to use an Moneycorp.

What I cannot seem to find out

1) How I would go about notifying HMRC that the money I shall be receiving from my brother is my Inheritance, for the purpose of Inheritance tax


2) What documentation I may need to demonstrate this, and where I would send it.

I looked at the HMRC Wills tax and probate and the Inheritance Tax sections, but couldn't find any information there.

Many thanks in advance for any advice anyone might have to offer, or even just a link that explains the position.

Best regards.

RMC
Posts:435
Joined:Wed Aug 06, 2008 3:35 pm

Re: Inheritance in Italy transfer to the UK: what documentation?

Postby RMC » Tue Feb 27, 2018 12:45 pm

UK IHT is the liability the deceased, or, rather, his representatives. As your mother was neither resident nor domiciled in the UK, no UK IHT liability arises.

You and your brother will be liable only to UK CGT, on the difference between your respective shares of the property sale proceeds and its probate value, should register for self-assessment and complete Capital Gains pages of your tax returns. Documentation relating to the Italian Probate and property sale must be kept for approx. 6 years.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Inheritance in Italy transfer to the UK: what documentation?

Postby maths » Wed Feb 28, 2018 11:27 pm

1) How I would go about notifying HMRC that the money I shall be receiving from my brother is my Inheritance, for the purpose of Inheritance tax
Strictly speaking the monies you receive are your share of the sale proceeds from the apartment sales. Any gain you make should be reported on the Capital Gains Tax Supplementary Pages of your UK Tax Return.

Only if UK HMRC ask for details as to how you purchased the apartments, for example, would you then need to provide details of the inheritance.

RMC
Posts:435
Joined:Wed Aug 06, 2008 3:35 pm

Re: Inheritance in Italy transfer to the UK: what documentation?

Postby RMC » Thu Mar 01, 2018 10:18 am

Capital Gains pages MUST be filed where chargeable assets sold or disposed of were worth more than £44,400. It will also stop you being quizzed about the source of money at a later stage under the Money Laundering Regs. So do keep your documentation.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Inheritance in Italy transfer to the UK: what documentation?

Postby bd6759 » Thu Mar 01, 2018 11:40 am

Capital Gains pages MUST be filed where chargeable assets sold or disposed of were worth more than £44,400. It will also stop you being quizzed about the source of money at a later stage under the Money Laundering Regs. So do keep your documentation.
Only if he normally gets a tax return. If he doesn't get a return and the gains are below the exemption, there is no obligation to report.


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