Hi lupevelasquez
If your grandmother was resident in Italy, then there is no UK inheritance tax payable.
As you inherited the property on the death of your Grandmother, there is a possiblity that you will have UK Capital Gains Tax to pay, as well as any Italian taxes on the sale of the property.
The double taxation agreement with the UK and Italy, gives Italy the first rights to tax the sale of the property.
As a UK resident, you will need to work out if there is a capital gain payable in the UK.
You can do this by obtaining a just and reasonable market value for the property on the date you inherited it.
Convert from Euros to pounds sterling, using a just and reasonable exchange rate in operation at the time.
If the disposal value in pounds sterling is greater than the market value and selling costs, then there is a capital gain.
There is a calculator here which will help you work this out:
Tax when you sell property
If there is a gain, you will need to report it on a Self Assessment tax return, regardless of whether there is any tax to pay.
If you pay Italian Capital Gains Tax, you can claim a credit for this in your tax return.
Please have a look here:
Capital Gains Tax
Thank you.
