Tax break tips for investors
Overseas property investors in the UK who have made a purchase through a company are set to benefit from a recently announced tax break, designed to cut income tax costs faced by holiday home owners.
The government's removal of the 'benefit in kind' tax means that investors will no longer be subject to an income tax based on the assumed annual rental income of a given property. These could result in thousands of pounds worth of tax savings.
In addition it has been confirmed that the tax break will be effective on a retrospective basis, and as such, property owners who have previously made investments through a company will be eligible for a refund.
The tax break will come as welcome news to buy-to-let investment property buyers and holiday home owners alike, who can expect lower costs for their investments overall.
It is also likely to encourage people to buy overseas property through a company, which allows property buyers to avoid capital gains tax and stamp duty.
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