Inquiry Regarding Tax Obligations for Funds Transferred from Property Sale in Europe

Dear HMRC, I hope this message finds you well. I am writing to seek clarification on my tax obligations in the UK concerning funds that I plan to transfer from Europe. I am a UK resident and I recently sold a property in Italy. The proceeds from this sale will be transferred to a UK investment account. These funds are not intended for the purchase of any goods or services within the UK but rather for investment purposes. Could you please advise if I am required to pay any taxes on these funds once they are transferred to the UK? Additionally, I would appreciate any guidance on how to correctly declare this transfer to ensure compliance with UK tax regulations. Thank you very much for your assistance. I look forward to your response. Kind regards,

Hi taxhounter,
If UK tax resident and domiciled, you are liable on your worldwide income and as such need to declare the gain made on selling the property. if Italian tax has been paid, you can claim foreign tax credit relief to set against any UK tax doe the same source of income.
Thank you.

Hi, I'm a UK tax resident however what if the case I didn't make any gain by selling the property, which are taxes are implied in transfering funds to the UK? Can you please provide clear explanation and examples. Thank you

Hi,
As no gain then you will not have any tax to pay on the proceeds.
You will however need to declare any interest or dividends that this then generates whether you transfer the funds to the UK or not.
Thank you.