Assetz: Buying overseas property now lighter on tax

16 April 2007
The government's decision to abolish a charge on investors who buy homes overseas through companies is good news for property investors, Assetz advisers have announced.

Buying a home abroad through a company allows homeowners to pass on the property as they wish instead of having to obey local inheritance laws.

Historically, properties held abroad as holiday homes or as investments have been classed as a 'benefit-in-kind' and taxed on the basis of the rental income that the home would have accumulated if it had been let at the local market rate instead.

But the government recently decided to eliminate this tax, allowing Britons who own homes abroad to purchase their home through a company without tax.

"This latest government u-turn is great news for property investors and holiday home owners overseas," commented Stuart Law, Assetz managing director.

In Bulgaria and other increasingly popular parts of eastern Europe, it is only possible to purchase homes through a third party company.

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