Tax change for overseas properties announcedBy Lina Rodrigues • Mar 1st, 2007 • Category: Company News, Property News & Info
The British Government has announced its intention to bring forward legislation in Finance Bill 2008 which will ensure that individuals who have bought or will buy a home abroad, will not face a benefit in kind tax charge for any private use of the property if purchased through a company.
Draft legislation will be published for consultation later this year. HMRC will not seek to tax anyone in the intervening period where the following conditions are met:
- the property is owned by a company owned by individuals;
- the company’s only activities are ones that are incidental to its ownership of the property;
- the property is not funded directly of indirectly by a connected company
- the property is the company’s only or main asset.