Majority of British Expats Unaware of Tax Benefit
A study carried out by Find UK Property has revealed that most British expats are unaware that they could get up to £10,000 of tax free rental income when they purchase a property in the UK.
The UK currently allows expats and residents of many other countries who purchase a home in the UK to claim a tax-free personal allowance which in the current year is £10,000 and is increasing to £10,500 next year. Whilst there has been debate on if this allowance should be amended or restricted, it is still in force and likely to remain so in most cases.
However, a Find UK Property survey, carried out in early September, found that most expats were not aware of this fact. In response to the questions ‘Would you have to pay UK tax if you had rental income of £10,000 with no other UK income?’ only 36 per cent knew that no tax would be payable, while 64 per cent incorrectly said yes, or did not know.
“Many expats work hard overseas to generate savings which often just sit in bank accounts depreciating in real value,” said Andy Noble, Senior Marketing Consultant at Find UK Property. “One of the best ways of utilising their funds is to buy a good investment property in a secure country such as their own country – the UK.
“With an investment of just £55,000 they could purchase a two-bedroom house that would generate over £4,200 income tax free as well as growing in capital value,” he added.
To find out more about the investment opportunities offered by Find UK Property, visit their website: www.findukproperty.com