This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Benefits on French holiday home!

Joined:Wed Aug 06, 2008 3:11 pm

Postby ian.wright@beechams. » Tue Nov 23, 2004 7:56 am

We have a client who owns shares in a French company which owns a French property. It was set up this way for flexability regarding French IHT rules.

It is simply a holiday home in France under a French company unbrella.

The client is a director and share holder.

The Inland Revenue in the UK want to try and tax him under accomodation benefit rules.

This is crazy! Can they?

Joined:Wed Aug 06, 2008 2:19 pm

Postby Taxbar » Wed Nov 24, 2004 2:01 am


you are probably talking about a French SCI.

The benefits in kind issue is well established, though rare in practice.

The usual advice is to have an independent GERANT or manager of the SCI, a local agent!!. The IR have in correspondence accepted that in that situation there is no shadow director and no benefit in kind.

You need specialist tax advice to assist your client to fight the IR and to possibly re-organise the SCI for the future.

Daniel M Feingold
Barrister-at-law (NP)
Strategic Tax Planning
International & UK Tax Consultants

Return to “Tax Investigations and Enquiries”