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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have a question about tax. citizen with residence in the

Resolved Question:

Good afternoon
I have a question about tax. I am Italian citizen with residence in the UK. Work and live here and married to British citizen. My father who lives in Italy would like to send me some money as inheritance (about 40k). Please can you advise what taxes will I be liable to pay here is it inheritance tax or will be taxed as gifts?
Thank you
Kind regards
Daria
Submitted: 7 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 7 months ago.

Thank you for your question.

You will not be liable to pay any tax on the gift being sent to you by your father.

Recipient of teh gift receives the gift free of taxation as there is no direc tax on gifts.

You don't have to report it on your tax return.

You should make your bank aware of this impending large sum coming into your account to comply with Money Laundering Regulations.

I hope this is helpful and answers your question.

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

Customer: replied 7 months ago.
Good morning,
Thank you for the reply.
I just wanted to clarify something as I read that the exemption on gifts is up to £3,000. So will I have to pay tax on the remaining amount?
In addition does the inheritance tax rule apply to me as my dad lives in italy, will the 7 years rule apply? I understand there is a double taxation treaty between the uk and italy.
Thank you
Regards
Daria Ozino
Expert:  taxadvisor.uk replied 7 months ago.

Thank you for your reply.

The annual exemption applies to the person giving the gift and not the person in receipt of the gift.

Inheritance tax rules apply to the person making the gifts and not to the individuals who receive the money. The seven year rule would apply to your father if he was a UK National..

Yes, there is a double taxation treaty between the UK and Italy. If you were to suffer any tax in Italy on your income and gains, you would be able to claim foreign tax credit relief against it.

I hope this is helpful and answers your question.

If you are happy and there are no more issues I will appreciate if you would kindly rate/accept the service I provided to ensure I get credited for it by Just Answer.

taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4879
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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