Tax bonus for people buying property abroad

Holiday home owners often purchase property abroad through a company, in order to avoid local inheritance laws. This makes them a director of the company owning shares in the home, which they can pass on as they wish upon death. However, they have been subject to an annual tax in the UK as the property has been classed until now as a ‘benefit-in-kind’. This tax is based on the rental income that would have been achieved if the property was let at the local market rate. This charge is being scrapped from 2008, resulting in thousands of pounds of savings for the average international property...