New estimates from the Office of National Statistics have shown that the value of international property owned by Britons has more than doubled in the last four years. According to the figures, the value of property abroad owned by British people was just above £23 billion in 2003-2004, up from an estimate of £11.1 billion in 1999-2000.
The figures reflect not only the increasing numbers of people investing in property abroad, but the rise in value of that property. The statistics show that in 1999-2000, 156,000 people owned property abroad. During 2003-2004, that number had grown to 231,000.
European countries proved to be the most popular location for second homes, contributing to 79% of total investment. Spain and France were found to be most popular, followed by Portugal and Italy. The remaining 21% of buyers were believed to be investing in countries such as Australia, Canada, the Caribbean, India, New Zealand, South Africa and Sri Lanka.
Our view
There are huge capital gains tax liabilities being stored up by buying second properties without advice! Not to mention Inheritance tax and wealth taxes.
As experinenced International advisers, you may wish to contact us for a free consultation before planning to buy.