Holiday Rentals News - Holiday home owners to benefit from tax change

Holiday home owners to benefit from tax change

Holiday home owners are soon to benefit financially from new regulations which will see the government get rid of the UK tax on property that has been bought through a company.

Assetz reports that those holiday home owners who buy overseas property through a company in order to avoid local inheritance laws will, from 2008, no longer have to pay an annual UK tax.

The analysis of Gordon Brown's Budget by the property company said: "This tax is based on the rental income that would have been achieved if the property was let at the local market rate. This charge is being scrapped from 2008, resulting in thousands of pounds of savings for the average international property owner who bought through a company.

"They will also be able to claim tax back retrospectively."

Assetz warned however that holiday home owners will still have to pay tax on the rental income from property let in the open market.
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