tax on interest

[gt]

just a bit more info please
From my understanding you leave your money in the account for varying times ie 1 month 3 months or 1 year,how is the intrest calculated.
i know the lira fluctuates so the intrest is variable but can you actually live off the intrest as in the above figures(£100,000)
once again my understandings is that you can live in comfort without the trimings for around £6000 per anum.any help would clarify a few doubts for me.

[apollo]

The interest rate shown is for 12 months. Therefore if you have a monthly account then you will get 1/12.

The rate given is for the period of your account. So if you have a 12 month account you get that rate for the 12 months the same applies  for 3months and 1 month.

If you have a 1 month account at say 17% and you do nothing at the end of the period then the account is left to run at rate applicable at the time, could be more could be less.

All of the interset earned is then subject to tax.

[lizw]

Sorry guys but i dont think that is right - we invest off shore in order to avoid tax - and then we declare it against all our other incomes etc to pay the least amount of tax.  Thats why people invest in Guernsey etc.. #304;F the interest here is your only income then against personal allowances etc the tax probably will not be more.  Well it is my belief that is how it works everywhere else in the world.  You must have heard of the R85 in the UK which non tax payers complete in order to get interest gross - that also applies to non residents. So why not Turkey - i know, because its Turkey!!  The UK does have an agreement of reciprocity with Turkey, so it should be a choice of where you prefer to pay the tax dependant on where it would be more beneficial to you..

[jolini]

quote:Originally posted by going east

wish i had £100,000 to invest, i was just using this number for easy calculations, thanks for the info

Can tbhis really be the case? I haven`t heard the other side of the "free lunch" syndrome yet -- or perhaps I`m just an old cynic!!

If there are no serious catches then then the way to go has got to be to
raise £100,00.00 @ say 6% on a uk mortgage and re invest in Turkey @ twice this rate or more -- why isn`t everybody doing it then?

[starman]

because to change 100,000 GBP into YTL is classed as an act of lunacy.

[apollo]

Factors to bear in mind are;
The exchange rate which last year went from 2.3 to 2.8 lira and is now 2.7ish to the pound.

Interest rates last year fell from 22% to 14% and are now back at around 17.5%. 3 or 4 years ago the interest rates were 44%

Put that lot in the pot and play mind games.

[cheerful]

No wonder the country is going to pot.

[stoop]

Risk and reward!!

[going east]

starman said
because to change 100,000 GBP into YTL is classed as an act of lunacy.
we have just sold our house in the UK and will be moving out in october for good, leaving behind tony blair,the cold and the wet, and investing some!!! of our money in turkey,(must be an act of complete lunacy) look forward to living in the asylum and hope the other lunatics are friendly. [)]

[wickwilly]

What Starman meant was to change 100000 pounds into Turkish Lira was an act of lunacy. If you changed it today you would have got 272000 Lira but if it goes up to 280 per pound as is expected you have just lost 8000 ytl on the exchange rate (approx 3000 pounds).

WW