shiva0104

I understand I can use the market rate, what I don’t get is: - how do I demonstrate that I’ve took the correct market value? (Italian tax agency has it, but how hmrc will know this is correct) - do I need to report anything if I don’t have to pay?

Hi, I’m currently on a skilled worker visa. I’m going through the selling of a property in Italy which I own since around may 2017, its price has been established around 165k€. The property was my main and only property and I lived there until I moved to the uk to work in January 2022. Then I started renting my house in Italy in April 2023 until June 2024. I don’t need to pay any tax in Italy when I’ll sell because I owned the property for more than 5 years. Also, I received the property for 90k€ despite the market value being around 160k€ at that time, because it was my mother’s house and she gave it away for a favourable price. I had plenty of reading in gov.uk about taxes, but I still have some doubts: 1. Do I have to pay CGT on the selling? 2. If yes, can I use the market value of the house in 2017 to calculate the gains. How can I prove that I was given the house for a very favourable price? 3. If I don’t have to pay CGT, should I still put it on my tax return or declare it in some way to HMRC? 4. As far as renting is concerned, given I paid my taxes in Italy for it, do I need to report this income to HMRC? If yes how can I show/attach any payed taxes abroad to get the corresponding relief? Many thanks.