Message:I have a client who is Italian

For your first query I would look at "IVIE Italy" as a web search, this is one result. I'm not too sure what happened regards UK council tax being paid and if it could be used to mitigate any IVIE. If it is this, then I do not believe it has anything to do with CGT. Not sure about your second question, but move an amount above a few thousand these days and you will get questions asked.

An Italian tax resident with a UK property which is let out will have a UK income tax liability on rental income and a UK Capital Gains Tax liability on any gain made on the sale of residential property.The individual will also be liable to Italian tax on the rental income and capital gains. Advice should be sought from a qualified accountant (commercialista) in Italy or specialising in Italian tax. The calculation of the taxable rental income in Italy is different to the UK and generally there are fewer deductions. The UK tax paid will normally reduce the Italian tax payable (under the UK/Italy double tax agreement) so that the total tax paid is an amount equal to the tax in the country with the highest tax bill.As noted by stevemonkseaton there is an additional annual tax in Italy on the capital value (usually based on the council tax banding or in some cases the cost in the case of land/buildings). I believe that UK council tax is not recognised by the Italian Tax authorities as a corresponding tax. However, where the UK property produces taxable rental income then it is possible that no IVIE is due. This should be checked out with and confirmed with a commercialista as this is merely my recollection of what I researched when IVIE was first introduced. To avoid penalties it is essential that the details are properly disclosed on the Italian Tax ReturnIt does not matter whether or not the proceeds of any sale are remitted to Italy; although if they are not and are held in a bank account or invested outside Italy then IVIE or IVAFE (basically the same as IVIE but on investments excluding land/buildings) may be payable annually on the value.

I would bow to Panner on any question on tax as it is his field and has put some great detailed information out there on the subject.

Hi stevegwmonkseatonMany thanks for your response. Most appreciated Chris

see , here ,http://www.finanze.gov.it/opencms/it/fiscalita-comunitaria-e-internazionale/convenzioni-e-accordi/convenzioni-per-evitare-le-doppie-imposizioni/and find the professional for yr's usehttp://www.lifeinitaly.it/Servizi_Immobiliari/avvocati-e-notai.phpi suggest you Mr Ceroni in Bologna