HMRC have changed the rules on claiming a refund of Class 1A national insurance contributions (NIC) in connection with homes owned outside the UK through a company.
In 2008 HMRC changed the law so that the use of overseas property, such as a holiday home, no longer gave rise to a tax charge. This was because HMRC recognised that it was unfair to penalise people who had been forced to purchase their overseas property through a company due to property ownership rules in the overseas jurisdiction.
Unfortunately, at that time, it was not possible to reclaim the Class 1A NIC paid by the company because the rules covering national insurance did not allow this. However, from 6 April 2011 the NIC rules have been changed to allow the overpaid Class 1A NIC to be refunded. The claim must be made in writing by 6 April 2015.
If you need further advice, please do not hesitate to contact us. Our contact details can be found on our web-site.