Granny Tax set help overseas property sector

George Osborne’s recent Budget
included plans to freeze the personal tax allowance for pensioners.  This controversial measure has been
nicknamed the ‘Granny Tax’ and with further changes set to reduce incomes for
pensioners in coming years, leading experts believe it may encourage more Brits
to retire abroad.

Keep reading for details of the
tax changes and why many market analysts think that increasing numbers of Brits
will look to move to overseas property in their retirement years.

Pensioners set to lose hundreds of pounds a year

Recent figures from the Inland
Revenue showed that the Chancellor’s tax changes will leave over 4 million
people £83 a year worse off on average in 2013-14 and 360,000 individuals aged
65 set to lose £285 a year on average.

Danny Silver, a leading French
property expert, observes said: “With benefits axed and British pensioners
seeking to protect their retirement funds from government invasions, more Brits
will be looking to retire to countries in which they will be taxed less with
the forever popular destination of France offering a great escape.

Overseas
property specialist HomesGoFast.com agree. 
He said: “With the Government keen to increase the tax they take from
pensioners, we expect many more Brits to consider retiring abroad.

“The costs of living can often be
cheaper overseas.  For example,
food and restaurants are around 20-30 per cent cheaper in France than they are in
the UK.  As pensioners’ incomes
reduce they will increasingly look to make their money go further by moving
overseas.”

France and Spain remain the two
most popular countries with Brits retiring abroad, although the problems in the
Eurozone have led many people to consider locations further afield.  Australia, Thailand, India and the USA
have become increasingly popular over recent months.

Author Nick Marr