IVIE - Value of Property in UK
Jul 7th 2017, 12:13 pm
#1
Forum Regular
Thread Starter
Joined: Oct 2008
Posts: 254
IVIE - Value of Property in UK
Hi all,
It's that bloody tax-return-time-of-year again! And I've got a little issue about UK property "value" with regard to paying IVIE.
I think that here on the forum, we've come to the understanding that for UK properties this is done by:
1. taking the mid-point of the council tax band and
Example: Band X= £80k to £120k, so midpoint = £100k,
2. converting it into Euros using the "Cambio di riferimento" on 31/12, as specified by AdE (found online).
Example 2015: The rate on 31/12/2015 was 0.73395 - so the value of the house for last years tax return would have been 136,249 euros.
3. Pay tax at 0.76%
136,249 Euros by 0.76% = 1,005 euros TAX TO PAY
---> here's the bit I'm not sure about:
So when I calculated the value of the property for this years return (for 2016), I find the Cambio di riferimento at 31/12/2016 = 0.85618 (thanks to the fall in the pound) so, property value for 2016 should be:
£100,000 x 0.85618 = €116,797
Therefore tax to pay: 116,797 x 0,76% = €887
So, it seems that I had to pay LESS ivie this year! Hooray! That's great because my rental income was vastly reduced also due to the fall in the pound too!
Except that its not great. I've apparently got it wrong.
My commercialista says that the value of the property ORIGINALLY declared is the one that we have to now keep declaring!!!! He said that the AdE have cleared up that issue. I'm now trying to find the evidence of that.
Is that what others have found???
It's that bloody tax-return-time-of-year again! And I've got a little issue about UK property "value" with regard to paying IVIE.
I think that here on the forum, we've come to the understanding that for UK properties this is done by:
1. taking the mid-point of the council tax band and
Example: Band X= £80k to £120k, so midpoint = £100k,
2. converting it into Euros using the "Cambio di riferimento" on 31/12, as specified by AdE (found online).
Example 2015: The rate on 31/12/2015 was 0.73395 - so the value of the house for last years tax return would have been 136,249 euros.
3. Pay tax at 0.76%
136,249 Euros by 0.76% = 1,005 euros TAX TO PAY
---> here's the bit I'm not sure about:
So when I calculated the value of the property for this years return (for 2016), I find the Cambio di riferimento at 31/12/2016 = 0.85618 (thanks to the fall in the pound) so, property value for 2016 should be:
£100,000 x 0.85618 = €116,797
Therefore tax to pay: 116,797 x 0,76% = €887
So, it seems that I had to pay LESS ivie this year! Hooray! That's great because my rental income was vastly reduced also due to the fall in the pound too!
Except that its not great. I've apparently got it wrong.
My commercialista says that the value of the property ORIGINALLY declared is the one that we have to now keep declaring!!!! He said that the AdE have cleared up that issue. I'm now trying to find the evidence of that.
Is that what others have found???
Jul 7th 2017, 7:46 pm
#2
BE Forum Addict
Joined: Nov 2011
Location: Central Italy
Posts: 3,662
Re: IVIE - Value of Property in UK
I thought the Unico P/F had to be submitted on 30 June or 2 October. Why is your acountant doing it now?
Jul 7th 2017, 11:34 pm
#3
Forum Regular
Thread Starter
Joined: Oct 2008
Posts: 254
Re: IVIE - Value of Property in UK
(And my intention was to post before, but you know how it is with these things ....)
Jul 8th 2017, 8:29 am
#5
Forum Regular
Thread Starter
Joined: Oct 2008
Posts: 254
Re: IVIE - Value of Property in UK
I understand that deadlines were extended due to huge confusion with the new system last year and the massive amount of late filing.
I don't understand why tax filing in Italy is made to be so confusing!
Anyways, I'm sure I'm not the only one to have paid IVIE this year, or am I? LOL
