How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask taxadvisor.uk Your Own Question

taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4940
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

I'm an italian citizen who resides in the UK. I would like

Resolved Question:

Hi I'm an italian citizen who resides in the UK. I would like to purchase a property back in italy and I own a property here in the UK. Could you advise how the tax system works?
Thanks
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Please advise how long have you lived in the UK?
Do you any income from outside the UK?

Many thanks
Customer: replied 2 years ago.

Hi,

I've lived in the UK since 2005 and don't have any income outside of the UK.

Thanks

Alessandra

Expert:  taxadvisor.uk replied 2 years ago.

Alessandra, thank you for your prompt reply.

Basically, as a UK resident for tax purposes, you are taxed on your worldwide income and gains. You have lived in the UK since 2005.

You can buy a property anywhere in the world. Any income you get from that property would be chargeable to UK income tax. The same would apply to any gain you make on it when you sell it.

Having said that, you claim foreign tax credit relief against UK tax for any tax suffered on that income overseas. In your case, if you were to buy a property in Italy and get rental income on it that is taxed in Italy, you would be able to claim Foreign tax credit relief against tax suffered in Italy.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4940
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Hi OK

that helps. So would foreign tax relief cover 100% of the taxes that I would pay in the UK and would I have to pay both and get the tax relief at the end of year in the tax return.

Also how can I find out what tax I would have to pay in italy?

Thanks

Alessandra

Expert:  taxadvisor.uk replied 2 years ago.

Alessandra, thank you for your reply

In the UK, you would report your property income in Itlay (if any) by completing the supplementary pages SA106 - foreign income and gains to the main tax return.
You would report any foreign tax suffered on this income by completing the relevant sections of SA106.

HMRC would calculate what additional tax is payable if any on that income when you file your tax return. You would pay to HMRC tax based on UK tax calculation less tax already paid in Italy.

More information on foreign income and foreign tax credit relief can be found here

https://www.gov.uk/government/publications/self-assessment-foreign-sa106

Your second question is how to find out what tax is payable in Italy. I am a UK tax expert and my expertise does not cover Italian tax.

You may find this link helpful.
http://liguria.angloinfo.com/information/money/income-tax/

I hope this is helpful and answers your question.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.co.uk/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.co.uk/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.co.uk/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.co.uk/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.co.uk/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions