chaz

Can anybody tell me if the 4 year rule on capital gains tax begins when you buy the property or when you get your 'TAPU' as I was in a co-operative for 3 years but have now just got my Tapu.

martin m

Hi Chaz
Almost certain 4 years starts from getting your tapu,its already on here somewhere, but never fear someone will know for definate
martin &chris

bodrumsjh

I was informed that it is 4 years from the date of the Tapu.

Before getting too excited about zero capital gains tax in Turkey, however, I believe that reciprocal tax arrangements between countries may mean that if you sell a property abroad and move the money to your home country, you will still have to pay the difference between the capital gains tax in your home country and what you have already paid on the profit in Turkey.

So, for example, if you are a taxpayer in UK and you sell your Turkish house and move the money to UK, then UK capital gains tax on the profit may be 40% minus any capital gains tax you have already paid in Turkey. If Turkish capital gains tax was zero, guess what the tax in the UK might be !!!!

I will be very pleased if someone knows I am wrong.

Stewart

immac

I don't think you are wrong but I don't believe it only applies if you move the cash back to UK. Any offshore funds are liable to UK taxation.
Also, because you pass the 4 year cut-off for Turkish Cagital Gains, it does not mean that you have passed it for UK CG rules (which I think is 7 years). So if you sold in year 5, for example, you do not pay Turkish CG, but you do pay UK CG on an offshore asset.
The rules of Double Taxation only mean that you don't pay the same tax twice in two countries, not that you don't pay it if you avoid it in Turkey.

Ian

biggles

i have to say you do pick up some good info on this forum. we got our tapu 3 years ago and i was thinking we wont sell [if we do ] till we have had it another year, that way we will avoid cgt ,but evidently not the uk cgt . ah well life,s a bitch.

RIK

Hi Ian.If your Turkish house is your main residence ı.e. No UK property then surely it would not be liable for any Tax.Or are you going to tell me different ?

Ian

immac

No, you are correct (I think), but the thread was started with a question about what I assumed was a holiday home. I must stress that I am not a tax expert, so it is only opinion and experience that I bring to this forum. I would always advise people to use it as a guide but to seek professional advice to confirm.

Ian

RIK

Hi Ian.I did ask our Tax Advisor but neither he nor others knew the answer.It would be interesting for one of us in the UK to get hold of the IR. booklet CGT1 which outlines Capital Gains in detail. However, my guess is that my topic will not be covered and you would have to ask at a UK Office.

Ian

Peaceplant

Thought it was 5 years in UK?