UK residents who own holiday homes that they bought through their company are to receive exemption from a "living accommodation" tax charge.

The Finance Act 2008 means that those with overseas property will not face fees if they have bought property through their firm, reports STM Fidecs.

Those who can show that they have paid income tax before 2008 to 2009 on the "benefit of living accommodation" can now claim money back.

If the home was purchased for the director of a company or another member of their family or household, they will be eligible for the refund.

The legislation enables those firms whose "main or only asset is a relevant interest in the property and its only activities are ones that are incidental to its ownership of that interest" to claim back taxes paid.

In related news, the Association of International Property Professionals recently stated that Spain is a favourite location for second home buyers from the UK.

The European country accounted for more than one-quarter of all purchases made overseas in 2008.