Earlier this year the Government announced tax changes to be
introduced in 2008 which will effectively scrap the UK tax on
property (real estate) bought through a company. This will mean a
considerable tax bonus for British people owning property overseas
for private use who have bought that property through a UK
registered company of which they own the shares.
Holiday home owners often purchase property abroad through their
own UK company in order to avoid local inheritance laws, which is
achieved by passing on shares in the company rather than
transferring the property.
Until now these transactions have been subject to an annual tax in
the UK as the property has been classed as a ‘benefit-in-kind’
which is calculated on that properties potential rental income.
From 2008 this charge is being abolished which will mean a
saving of thousands of pounds for the average international
property owner who bought through a company.
Even better news, the legislation is planned to be retro active
so that those affected will be able to claim tax back
retrospectively.
Return to
Newsletter