Tax on SCI owned homes ??

[Existential2]

Folks

Anyone who owns a house in France through an SCI (or other company structure) may be interested to read the following FT.com article (you may have to copy and paste the link) :

http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1078381743904&p=1012571727102

It appears to suggest that the Inland Revenue are considering taxing such owners as receiving a "benefit in kind" from the property ...

But not clear if this would only involve Uk residents ...

Jean-Paul

[peebee]

For anyone interested there is a report in todays Daily Mail entitled 'Holiday homes threat'.
Quote:-
'Britons who own holiday homes abroad could soon face hefty new tax it has emerged. They may be landed with a bill for thousands every year on properties in France, Spain and other countries.
The size of the tax currently being considered by the Inland Revenue would depend on the rentable value of a home even it is not being leased.
Almost 1.5 million UK residents have properties overseas, but the proposed tax would only affect those who bought a home through a company, rather than in their own name.
In the past, buyers abroad have formed Societe Civile Immobiliers (SCI) in France to avoid Napoleonic Inheritance laws operating in much of Europe which forbid people from leaving 100% of a house to a surviving spouse.
However a House of Lords ruling in 2001 means buyers overseas who use companies are seen as having the same status as company directors, who must pay tax on benefits in kind including the use of a home.
A decision on whether the property tax will be levied is expected soon after Wednesday's Budget. Simon Rees, of City accountants PricewaterhouseCoopers, said the firm was warning clients to the levy would be introduced. He added there is nothing to prevent the Revenue from going after the tax, and I expect them to do so. If you are regarded as an employee of an SCI, which owns and makes available to you a property, there is a taxable benefit each year.
A large proportion of the estimated million Britons with Spanish or French homes are thought to use companies to buy them.
Home owners are expected to be billed up to 40% of their property's annual rental value'.

Pat