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Posted Sun, 12 May 2024 19:19:42 GMT by Elena
I have double citizenship, UK and Italian. I am resident in the UK where I only use PAYE. I have inherited a property in Italy which is let and all taxes on that income and property taxes are paid in Italy. 1) do I need to declare this income in Uk? 2) how do I avoid double taxation / apply for tax relief? Thank you
Posted Wed, 15 May 2024 16:29:35 GMT by HMRC Admin 25 Response
Hi Elena
Yes, the default taxation method in the UK, is the arising basis on your world-wide income.
The UK / Italy tax treaty gives Italy the right to tax your Italian income from property first.
You would declare this foreign income in pounds sterling in your Self Assessment tax return and claim a Foreign Tax Credit of up to 100% of the foreign tax paid.
This prevent you paying the same tax twice (double taxation).
Thank you. 

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