Property Pension Rule Changes April 2006 - Costa Blanca Property

NEWS:

In April 2006, there will be large changes in the UK pension rules which will enable people to buy property for sale in Spain and the Canary Islands like investment property and holiday homes in the Sun with a personal pension. If you buy property in Spain with a personal pension, it will, after april 2006 not be subject to Capital gains tax or tax on rental income from buying property in the Costa Blanca for example.

Here is a brief Summary of the Rules regarding the NEW property pension rules:

Up to half the pension fund value can be used for the purchase of a property overseas or a holiday home in Spain, whereas contributors are currently limited to a small proportion of the earnings.

From April 2006 pension contributions can be 100% of earnings up to a maximum £215,000 Sterling and a limit during a lifetime of £1.5 million pounds.

Here is a simplified example about the NEW PROPERTY PENSION RULES:

Property Costing - £ 150,000
Deposit Required 30% - £50,000

Pension Fund Required - £100,000
50% of fund - £50,000

Here, you can take a mortgage for the balance of the property in the costa blanca and the property can be rented out to cover the cost of the Costa Blanca mortage. This is, however, just a simplified example of the new changes to the British pension scheme in the UK, to talk to our Financial services specialists about this in depth, contact us today using the form below, and find out that this scheme could buy, in many cases and locations a detached property in the Sun! There are many options available to you, contact us today.

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