Overseas property investors advised to watch out for tax pitfalls
Investors looking to buy properties in overseas countries have been advised by experts to watch out for tax pitfalls that can emerge from either the UK or the host country.
Capital gains tax (CGT) and inheritance tax are likely to remain difficult subjects with relevancy to both the UK and host nation's tax authorities, making legal clarification a necessity for moving abroad.
With CGT, charges may be liable in the UK for properties for property owners living abroad for several years.
As Leonie Kerswill from PricewaterhouseCoopers told the Telegraph: "People should remember that unless they're going to be away for more than five complete tax years then any capital gains they make while they're away will still be liable to CGT back home."
Equally, Tony Shah of financial adviser Towry Law told the newspaper that any wills written in English should be duplicated in the foreign country, ideally mirroring each other.
In particular, inheritance tax planning for France is of particular importance because of the strict rules surrounding thresholds for the transfer of assets upon death that are dependent on the relationship of the deceased to the inheritors.
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