Budget and 'some' second home owners?

[Teamedup]

Many people who own properties abroad do so via a company. Under current tax law, they could suffer a heavy tax charge meant for employees enjoying free holidays in a house provided by their employer.

 

That is a quote from the BBC stuff about the budget. This has been discussed in the past, has anything really changed.

[Iceni]

TU - benefits in kind legislation has been around since God was a boy so anyone who has purcahsed a foreign home via a company will have taken this into account. Perhaps the BBC mean that HMIT has woken up to what is happening in the real world.

John

not

[Will]

It has often been quoted as a possible disadvantage of owning a house via an SCI, which in turn is promoted as a way of avoiding inheritance issues for non-residents. Now it looks as if what previously existed as a threat may become reality. i.e. shareholders in a French SCI (or any other property owning company) could be taxed in UK on the notional rental value.

[Will]

The actual text in the official budget document seems to indicate the opposite:

"Homes abroad, 5.119. The Government today announced its intention to publish draft legislation later this year which will ensure that individuals owning or planning to buy a home abroad will not face a benefit-in-kind tax charge for private use, if it is owned through a company. The Government will discuss the draft legislation with interested parties to ensure that it achieves these aims."

[Monika]

And we are no longer able to use our (Company) Vehicle from 6th April 2007 for private use, unless we pay £ 3000 a year for the privilege. So no more transporting building material etc. to France, apparently they are going to make spot checks at the docks, at supermarkets and schoolgates.

[hastobe]

[quote user="Will"]

The actual text in the official budget document seems to indicate the opposite:

"Homes abroad, 5.119. The Government today announced its intention to publish draft legislation later this year which will ensure that individuals owning or planning to buy a home abroad will not face a benefit-in-kind tax charge for private use, if it is owned through a company. The Government will discuss the draft legislation with interested parties to ensure that it achieves these aims."

[/quote]

I believe there has been some petitioning of the government over the last year or so to eliminate the aforementioned tax effects and there were vague promises that the issue would be dealt wth so..

Kathie