Advice about parents’ contribution to second home

LadyBea

Are there any rules about parents contributing to renovation costs on a second home? We are looking at buying a second home in Italy and want our parents to join us for holidays. However my Father has poor mobility and we are finding it difficult to buy a property with a downstairs bedroom and bathroom. My parents are willing to pay for any building work needed to bring a house up to spec but the house would be in our name. Are there any downsides to this or tax rules preventing this happening? We don’t want to fall foul of tax regulations. Thanks.

AdrianC

You're talking about Italian tax law and Italian building regs, not British.

Have you considered the effects of the B-word...?

LadyBea

Oh yes, we’ve thought about the B-word a lot but it’s still something we want to do.
Forgive my ignorance but why do we need to consider Italian tax law? Our plan is that my parents will just give us the money to do the work, or maybe increase the budget for the house. Our preferred option would be to do the work ourselves so that we get exactly what we want but would we need to declare this to anyone, either in the UK or Italy? Or would they need to declare it? Their names won’t be on anything as we will be sole owners.

AdrianC

LadyBea said:

Forgive my ignorance but why do we need to consider Italian tax law?

Because the house is in Italy.