SCI Tax Break for French Property Owners - UK Government Abolishes Tax on Homes Abroad

The UK Government has announced that it will no longer consider the ownership of a home abroad held through an SCI or French property company to be a taxable benefit. This is most welcome news for many who have bought in France using a property company, and for the many who may now choose to do so. In order to avoid the constraints of French inheritance laws it is possible for non-residents to buy a home in France using a particular type of property company called a Société Civile Immobilière (SCI). Indeed, there are even advantages that can be created for those buying through an SCI who propose to relocate permanently to France. The use of a company is particularly useful for a group of unrelated people buying in France, or for those with children from a previous marriage. It is also a useful way of dealing with potential inheritance tax liability, through the gradual transfer of the property to your children. It is neither difficult nor expensive to set up an SCI, but there are various permutations that can be used, and it is not always necessary to buy through an SCI if your cirumstances do not warrant it. You can read more about the SCI by visiting our pages at Buying Through an SCI.