Tax changes to benefit overseas investors
Tax changes to benefit overseas investors
Britons who own a second home overseas are to profit from changes to UK taxation regulations. Independent property portal Home Move reports on the expected benefits.
The 2008 Finance Bill, which is currently working its way through parliament, contains changes that are in the interest of Britons who have invested in a holiday home through a limited company. Under the new system, which was outlined in Alistair Darling's March 2008 budget, UK citizens will no longer need to pay tax for residing overseas in company-owned properties that could generate rental income.
A number of investors have chosen to buy their property through a limited company "because of legal restrictions that they would otherwise face as individual property owners in their chosen destinations", Home Move claims.
The new measure will be retrospective, which means that "any tax charge is deemed never to have arisen", the website adds. Furthermore, HM Revenues & Customs will in some cases rebate any tax already paid.
Figures from the Office for National Statistics reveal that around 850,000 UK citizens own property abroad; Home Move estimates that between 10 and 20 per cent of this number purchased real-estate through a company.
This story was brought to you by holiday
lettings.co.uk, the UK's No.1 holiday home website.
9 June 2008
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