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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11132
Experience:  30 years as a practising solicitor.
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I own a home in Italy and have lived in it for the majority

Resolved Question:

I own a home in Italy and have lived in it for the majority of each year ( since the restoration was completed in 2008). I do not own any other property - I rent a house in the UK for my daughter to live in and occasionally stay there when I am back in UK.
I plan to git the Italy house to my daughter.
I do not intend to carry on living in the Italian property when I gift it as I will be moving back to the rented house in the UK ( I need to be in Uk for access to medical resources for my illness). Eventually - after 7 years time limit - my daughter may sell it? In the meantime she may rent it out as a holiday home and pay tax on the income.
My question is concerning any immediate charges/taxes payable from gifting the property to my daughter. Can you please advise if there would be taxes applicable and the process of actually gifting an overseas property. I cannot find any documents on HMRC site for gifting an overseas property?
Thank you
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
This is a question of private residence relief. Whilst the issue of capital gains tax on foreign properties can be very complex, the position here is that the house in Italy is your main residence. As such you are entitled to sell it or gift it and you will have no tax liability in the UK. Capital gains tax doesn't apply to your only or main residence. Clearly the timing of the gift will be important and the gift should be made prior to or about the time you leave Italy.
There are no other UK taxes you have to be concerned with so you will have no tax liability in the UK. You should check with an Italian adviser as to whether there will be any taxes to pay there.
As far as the process of actually gifting the property, the transfer would be made in accordance with the property law of Italy and again you should seek advice there.
I hope this helps.
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