Rebate for owners of foreign homes
Individuals who own property abroad through corporate structures are set to get thousands of pounds in tax rebates after a change to the benefit in kind rules relating to them
Many people set up companies through which they could buy properties, in a
bid to circumvent foreign tax and inheritance rules.
But the properties were treated in the UK as a benefit in kind for the
private use of the property if purchased by a company, and liable for tax.
Many individuals were unaware of the tax, and advisers had called for it to
be scrapped.
PricewaterhouseCoopers’ Leonie Kerswill said the change had been
long-awaited: ‘We’ve been asking for this for a long time. Many clients were
unaware of this, and it avoids negligence issues. It’s a common sense decision.’
Richard Mannion, national tax director at Smith & Williamson, said many
people had bought retirement homes abroad in this way, and welcomed the change.
The decision has been made retrospectively, and overseas property owners
could be due thousands of pounds in already paid taxes.