7 Jan 2008

The 2007 Budget (Budget Notice 50) announced legislation to ensure that individuals who have bought an overseas home through a limited company will not face a "benefit in kind" for any private use of the property.

Limited companys' sometimes used to buying overseas property in order to avoid inheritance tax problems in various countries and other bureaucratic complexities and high costs of transferring interests in such overseas properties.

Widely drawn legislation previously potentially created a benefit in kind on a director or employee of a limited company, where the property is "available" for private use.  

Such treatment can create extremely onerous and unexpected tax changes on individuals.

The proposed changes will remove this tax change, provided qualifying conditions can be met.  

If you require further advice please contact David Lee.