Overseas investors warned of tax implications

Investors who are looking to sell European property have been urged to take into account the UK tax implications that may arise from a completed sale.

Director of personal tax at accountancy firm PFK Matt Coward stated that while not everyone will be affected by the tax laws, those who are must not forget the potential financial consequences that come from selling a European home in the current economic climate.

"Broadly speaking, it will be everyone who has bought property in euro land probably in the last 18 months to two years," he explained, noting that long-term investors are unlikely to be affected.

Those who have been considering selling homes in countries such as Spain, France and Italy may wish to check to see if they will be affected following PKF's warning.

Cater Allen revealed last September that over three million people plan to purchase a foreign property in the next two years, with 42 per cent seeing doing so as an investment opportunity.

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