If you own an overseas property, do you have to declare it as part of your estate?

Question

My Wife has a property in Italy which she so far has not declared. I keep telling her to put it into our sons name but she seems to think "nothing to worry about it is impossible for the Inland revenue to find out"

I am very nervous about her stance on this because of the super fast data highway and how easliy information can be gathered about people online.

Is my wife right? if not what are the consequences if she is found out.

We are domiciled in the UK..

Thanks in advance...

Answer 1

IF she is letting it out AND the rent income exceeds the cost of maintenance and the interest on any mortgage she is paying by more than her Personal Allowance (if she has no other income) then sooner or later the Inland Revenue will want Income Tax ..

Also, assuming it's not her only Property, then if she makes more than about £7000 when she sells it, they will want to charge her Capital Gains Tax.

Otherwise, they don't really care (except, of course, people who evade Tax in one area are often evading in other area's so when they find out they may go through all her Tax Returns since the day she was born ..)