non uk resident, uk cgt double taxation

Hi I am resident in Italy, including for tax purposes, and in the process of selling my UK property, currently SSTC and undergoing conveyancing. The property was bought in 2001, used as PPR until 2007, then rented out when I moved to Italy. All salary(Italian) ,rental income (UK) and property ownership (UK) tax etc has been paid in Italy since 2007. From what I understand the difference in value between April 2015 and todays sale price is what may be liable for CGT. Once the sale is complete will CGT be payable in the UK or will it, under the double taxation agreement, be due in Italy ? What is the best route to avoid double payments and having to claim back from one or other authorities? Many Thanks

Hi ,
 

As a non UK resident disposing of a UK property, you are required to declare the disposal, whether or not there is a capital gain or loss, within 60 days of the completion date.  You may incur penalties and interest if the form or payment is late.  To help you work out if there is a capital gain, please use the calculator at : Tax when you sell property  .  Private residence relief can be worked out by following the guidance on helpsheet HS283 (   HS283 Private Residence Relief (2025) ).  There is guidance at : Report your Capital Gains Tax on UK property by post  and a link to the form to complete , print off and submit by post. Thank you .

Not HMRC...except HMRC, there is no PPR relief if rebasing to 2015 as is after the period lived in, similarly re straight line basis..anyway, you need to work the calculation out 3 ways and decide which is the best method for you... https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-calculating-taxable-gain-or-loss

Thank you for your reply, following your links has raised a couple of follow on questions. 1. re-basing from 2015 vs 2019, which one would applicable to calculate the gain( bought the house in 2001) ? 2. I understand that I have to report the sale to HMRC, but does that mean that mean that I have to pay CGT in the UK as opposed to Italy? The Italian authorities have always insisted on all worldwide income being taxed Italy so far. Will the double taxation agreement determine which jurisdiction will prevail in my case? Many thanks

It would be 2015...2019 is for non residential property/companies. An individual selling a residential use property would rebase to 2015 if thats the best method. With regard to the UK position, this regime was established in 2015 and covers all UK property sales regardless of where the owner is resident, I am working on the basis you are not also UK tax resident (hence the 2015 rebasing option for people in your situation). The DTA says (1) Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 of this Convention and situated in the other Contracting State may be taxed in that other State. So in your case, gains by a resident of Italy from the sale of residential property and situated in the UK may be taxed in the UK...MAY means the UK can tax it, and its taxable in accordance with UK rules. All UK sales are reportable and liable in the UK, regardless of where resident. The UK takes precedence as the property is in the UK, the gain is worked out and tax is paid in the UK. As a resident of Italy and being liable on worldwide income and gains there you would then report also in Italy and claim a tax credit for the tax paid in the UK, if this covers the Italian position nothing further is due there, but you wouldnt be able to claim a refund of UK tax paid there. If the Italian position shows a higher liability then you would deduct the UK tax paid and only pay the difference in Italy.

Hi storit Storey,
If it is a UK property, it needs to be reported here.
If you have also reported in Italy you would then need to amend the Italian charge to take into account any UK tax paid.
Thank you.