News: January 2012
Overseas holiday homes
As a separate initiative HMRC is targeting UK residents with overseas properties, but only if the taxpayer has assets between £2.5 million and £20 million and/or those who they reckon should be in the 50% tax bracket.
Letting of an overseas property by a 20% or 40% taxpayer may well not result in any UK tax to pay as the country in which the property is situated will want tax on the profit, which can then be deducted from any UK tax arising. So that is why the targeting is limited. However they say they will also look at those who on the face of it do not appear to be in a position to buy an overseas property.
If you own an overseas property and have any concerns about UK tax do please talk to us now.