Tax refund on overseas properties possibleBy Lina Rodrigues • Mar 10th, 2007 • Category: Company News, Property News & Info
Around 20,000 people who have bougth overseas holiday homes through companies could be in line for tax refunds averaging £4,000 for every year they have paid tax.
Until now, these investors have been regarded as shadow directors who are being provided with accommodation by their company. As such, the property has been classed as a benefit-in-kind on which tax is payable.
Last week, though, the Revenue & Customs scrapped the charge as long as the property is the company’s only asset and is used solely by the owner.
This legislation will be retrospective, which means that those who have been paying the tax will be able to claim refunds from the Revenue going back several years.
It is not yet known how far back people will be able to reclaim money because the new rules will not take effect until 2008 and the details have yet to be decided. The draft legislation will be published later this year.