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Where Taxpayers and Advisers Meet

Italian Citizen in UK and Italian Inheritance Questions

Joined:Sun Nov 07, 2010 1:31 am
Italian Citizen in UK and Italian Inheritance Questions

Postby LeeWT » Mon May 17, 2021 7:05 pm


I am an Italian citizen, with an Italian passport, but I have been resident in UK since 2012.
My father died in 2018 and my mother in 2019. They left their only house to my brother and to me, 50% each. My parents were Italian, always resident in Italy.

In 2021 we legally accepted the inheritance and we sold the house. I received 50% of the value in my European bank account while my brother received the other 50%.
My brother and I also received some money from our parents' bank account in Italy. We have paid all the tax in Italy for the house, for the inheritance, for the sale of the house, for everything.

Now I would like to understand the Tax situation in UK:
1. Is there anything I need to declare if I already declared everything in Italy?
2. Can I transfer the money of the sale from my EU bank account to my UK bank account or this will impact my tax situation in UK?
3. Can I use this money from the sale of the house as a deposit to buy my 1st house in UK and declare the source of the funds without any issue?
4. Will I still be a first time buyer?
5. What about the sum of money that I inherited from my parents' bank account in Italy (less than 10K)?

Thanks advance for your precious help

Joined:Fri May 16, 2014 3:47 pm

Re: Italian Citizen in UK and Italian Inheritance Questions

Postby AGoodman » Tue May 18, 2021 11:19 pm

1. Not on the inheritance but there is a chance of UK tax if: (a) you sold the property for more than its value when you inherited it (the date of death of the parent(s) who left it to you) or (b) any interest arose on the accounts you inherited.
2. Yes, you can transfer it. It makes no difference unless you are electing to be taxed on the remittance basis (you would know if you were)
3. Yes - a solicitor may ask to see the estate paperwork
4. I fear not as the Italian system is (I believe) that you become the owner of the property when you inherit it. It's worth checking properly.
5. (same as above)

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