EU citizen, Settled Status, doubts on tax on cash gift and bare ownership of property abroad

Hello, I am an EU citizen with Settled Status in the UK. My country (Italy) has me officially registered as a citizen residing abroad (AIRE is the Register of Italians Living Abroad) and my tax position is only relevant in the UK, so I usually don't submit any self-assessment in Italy (no income, no property there). I am about to receive from a relative (an Italian resident) a sum of money as a cash gift (it might be between 20,000 and 40,000 euros). This sum will soon be employed to buy the bare ownership of a flat from my parents, leaving to one of them the usufruct. Therefore, this is not a flat that will gain me any income for now, and it won't be treated as a First Home I buy to live in it. My questions are: - do I need to declare the cash gift in my UK Self-Assessment? - do I need to pay any UK tax on it, although it's not gaining me any income/interest? (it will soon used to buy the bare ownership) - do I need to declare the new property abroad as bare ownership in my UK Self-Assessment? - do I need to pay UK taxes on this property? Thanks

Hi,

There are no income tax implications on the receipt of a cash gift unless the cash gift generates interest or dividends . These would then potentially be subject to tax.  Further guidance can be found here : Tax on savings interest     and   : Tax on dividends   ).  You will only declare the property if/when rental income is received   .

Thank you.