PKF: Brits selling property abroad need to consider tax

Brits who are selling an overseas property need to ensure they consider the tax implications in the UK, it has been suggested.

Some people with a second home may be looking to raise extra funds at the moment by putting it onto the market, explained director of personal tax at accountancy firm PKF.

But they could face a "double whammy" because of falling property prices and currency exchange rate fluctuations, continued Matt Coward.

He added that it is a difficult time to find homebuyers either in Britain or abroad, so people should just try and sell and then deal with tax consequences as they arise.

"Those that are within this unfortunate coincidence of euro loss plus sterling strength, they'll need to work out their UK tax line and set aside some capital gains tax to pay next January."

Mr Coward also advised overseas home sellers to watch the movement in the foreign exchange rates.

Cater Allen reported last September that over three million people are expected to buy a foreign property over the next two years.