Author Topic: selling property help!  (Read 11894 times)

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Offline louisa

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selling property help!
« Reply #10 on: January 29, 2012, 07:22:34 AM »
Hi Scunner,

Sorry to hijack the thread but this has interested me.  Firstly, it's good to know the correct price is now registered on the tapus , that should put a lot of people's minds at rest when buying now.

The second thing, I was told you had to pay Capital Gains Tax in the UK for any overseas holiday home you've sold? Or any property that is not your main residence, you have to pay CGT on, and the HMRC somehow know if you have sold a property overseas? I don't know how they actually know, but I've heard that they do know somehow :(  I think they watch the activity on our bank accounts too!

I think CGT is 40% in the UK, but I didn't realise you had to pay tax to the Turkish authorities too. That sounds really unfair.

I also heard there's a time span or something whereby you're no longer liable for CGT?

Louisa




Offline Old Daffodil

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« Reply #11 on: January 29, 2012, 09:23:35 AM »
I believe that you are exempt from Capital Gains Tax if you sell at least five years after purchasing.
As from January 2010 TL 7.700 of the profit is tax exempt if you sell before the five years is up.
« Last Edit: January 29, 2012, 10:53:51 AM by Daffodil »

Offline keng38

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« Reply #12 on: January 29, 2012, 10:19:05 AM »
I was also under the impression that if you sold after 5 years there was no tax to pay! I'm also assumoing that its 5 years from the issue of the Tapu as well?

Offline bewva

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« Reply #13 on: January 29, 2012, 10:46:46 AM »
I have also been lead to believe that due to reciprocal tax laws if you pay cgt in Turkey then the same money can not be re taxed in the UK.
How true these 'I have heard' stories are I don't know it would be good if anyone has actually done it and can confirm.
I am not sure how HMRC would know if you have a property in Turkey. I can't see the Turkish government sending Tapu details to them, they can't even get the visa situation sorted without a farce.

Offline Scunner

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« Reply #14 on: January 29, 2012, 11:16:29 AM »
quote:
Originally posted by keng38

I was also under the impression that if you sold after 5 years there was no tax to pay!


That's why he is asking - he has owned it for 4 years and 10 months and is looking to hold off till he has owned it five years so CGT in Turkey is not payable. We discussed that on page one, maybe that's where you got the impression you mention!!!

He was also asking about the tax situation in Turkey so that he could sell in the best way for him. He didn't ask anything about UK taxation.

Offline Ovacikpeedoff

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« Reply #15 on: January 29, 2012, 15:45:15 PM »
Scunner I know that it does not relate to the original question but a couple of people raised a question about CGT liability in the UK.

The rate of CGT depends on your income and rate will vary from 18% to a basic rate tax payer to 28% if you are a higher rate tax payer.

You do not pay  full CGT in Turkey and the UK. If you are subject to CGT in Turkey you pay it in Turkey. The CGT liability in the UK is calculated and the amount already paid in Turkey will be deducted and the net amount paid in the UK. If your tax liability is less than you paid in Turkey you pay nothing in the UK. You do not get a refund of the difference from the UK or Turkey.

If your house is your primary residence then it would not be subject to CGT in the UK. If you lived in the UK and owned a house in Turkey you may not have any liability for CGT in the UK.

HMRC expects individuals to declare their liabilities to tax.
« Last Edit: January 29, 2012, 15:50:51 PM by Ovacikpeedoff »

Offline louisa

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« Reply #16 on: January 29, 2012, 18:01:09 PM »
Hi Ovacikpeedoff,

I'm still a bit confused.  I thought you paid CGT on any residential property that was not your main residence?  So if your main residence was in Turkey, you would then be forced to pay CGT on your UK residence when you eventually sold it or when you die - in which case your inheritors would have to pay the CGT?  But I'm sure I was told that there was some kind of time limit in certain circumstances?

I was also told that the HMRC do know your oney movements whether in the UK or abroad, which I think smacks of a nanny state.  The only thing I can think is that intelligence from government agencies is passed to and fro?

Louisa

Offline Ovacikpeedoff

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« Reply #17 on: January 29, 2012, 18:17:18 PM »
If you live in the UK and own a property in the UK it will be deemed to be your main residence. Sale of this residence will not be subject to CGT. If you own a property and just rent in the UK your property in turkey will be your main residence. During the recent boom some people living in the southeast could not afford to buy a property in the UK but wanted to get on the housing market and bought in France.

If you own a property in the UK and have a second home in Turkey then the second home would be subject to CGT.

I am sure that MI5 orMI6 do not have this big file in their offices with the list of everyone who has a house in Turkey.

I am afraid this is a little James Bond style. The british government cannot even tell who is using the NHS illegally.

On death it is inheritance tax that is applied.
« Last Edit: January 29, 2012, 18:18:29 PM by Ovacikpeedoff »

Offline cheerful

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« Reply #18 on: June 01, 2012, 19:32:37 PM »
Hilarious, Ovacik, you have really made me laugh.!!

Offline loz

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« Reply #19 on: June 01, 2012, 21:10:14 PM »
If the Uk don't get you Turkey will, reminder that if a named Tapu owner dies and is not reported to the Tax office at the time of death you will incur a fine, inheritance Tax, you will have to pay 10% of the price of the property if you have a Will and only 1% if you don't have a Will :([|)] (looking for confused and bored).  
Don't pay your water bill, fined, don't pay your electric, fined, don't pay your council tax, fined, don't pay ............. fined fined fined and did I mention fined.  

Yours
Confused, disheartened, bored.




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