View more on these topics

Tax on overseas property scrapped from 2008

British people with overseas private properties will benefit from a new tax bonus, says Assetz.

The firm says holiday homeowners often purchase property abroad through a company in order to avoid local inheritance laws, which makes them a director of the company owning shares in the home, which they can pass on upon death.

But they have been subject to an annual tax in the UK as the property has been classed until now as a benefit-in-kind. 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 International sales manager Martin Sadler says the latest Government U-turn is good news for property investors and holiday homeowners overseas, who have until now been penalised by the UK tax system, even though buying through a company is often simply the only way to buy abroad.

He says: “In France for example, many British people buy property through an SCI, which enables them to avoid French inheritance laws forcing the property to be sold upon death and divided between offspring. In some Eastern European destinations, it is only possible to buy property though a company if you are a non-resident.

“Individuals who have already bought could be in line to receive considerable payouts from the Inland Revenue next year, for any tax paid previously. The idea of buying homes overseas through a company will become even more popular following this U-turn.”


LV= and Bright Grey revamp CI cover

LV= and Bright Grey have revamped their critical illness cover in light of the Association of British Insurers new definitions for CI.The ABI’s statement of best practice for CI must be implemented by all protection providers by the end of April and many providers are taking the opportunity to revamp their CI products at the […]

Annuity options

Prudential head of annuities Aston Goodey says that as inflation bites into pensioners’ income, their only real alternative for making their money work for them is an investment-backed annuity and with-profits are a viable option.

Property Special Report: Correlation street

Three key words for property investors are location, location, location. For investors who want to reduce the level of risk in a portfolio, three important words are diversification, diversification, diversification.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm