martin m

Hi all
I have just been browsing some glossies that i sent for ref Thalassa beach resort in northern Cyprus, and aside from the fact that it looks fantastic (free cd) in BIG RED letters at the end it states that "capital gains tax is not paid on the sale of your first property",
Now its not that i am looking to sell, but as northern cyprus is Turkish(not arguing this point either way)then this rule should apply if it where true to owners anywhere else in turkey, so how come ive never heard it before,
Any one else heard this before or for some crazy reason is it just in northern Cyprus.
martin

KayaKoyuOldBoy

The phrase "your first property" means your home. I think there's a threshold up to which you don't pay CGT on your home. As far as I know it applies to Turkish and UK homes on a similar scale.

immac

In UK, CGT is not paid on your main dwelling so long as you live in it for 6 months (I think) after you bought it. If you have a second home then CGT is due on the sale if sold within 7 years. The fact that CGT is also due in Turkey, if that is where your second home is, is covered by the dual taxation policy which is a shared arrangement between the two countries. The CGT limit in Turkey is 4 (I think it might have changed recently) years. But, just because you don't owe CGT to Turkey does not mean you avoid it in UK - it only means you don't pay twice.
Ian

Germaine

I believe CGT in Turkey is now 5 years Ian.

rosehillgirl

Hi All,

Northern Cyprus is 'Turkish-Cypriot' and not Turkish. KKTC has different laws, taxation regulations and rates of tax. We have bought and sold two apartments there and not been liable for any CGT. The system of law in the KKTC is more akin to the British system and all of the lawyers there are study at British Uni's and have UK law degrees.
You would not be liable for any CGT-but the way things are at present you are unlikey to make much profit as very little is selling.

Ann

kaplumba

4 years if bought before a certain date Germaine and I can't remember the date, no doubt someone will know - Jan 2007 springs to mind but I might be wrong. It's the date the Tapu was issued not the date you paid.

Mr Turkey

Sorry to bring a dampner to the party guys,

The UK inland revenue tax you on your assets held globally. You are liable and responsible for declaration of all assets throughout the world, and tax will be assessed accordingly.

According to the financial times of two weeks ago, prosecutions for non declared offshore accounts are due to start in April. The deadline for "anmesty" has passed and now the I.R. is inundated with registration requests and declarations from those who are already feeling the heat.

Taxation s a hugely complex subject, but unless declared as non domiciled in the U.K. for tax, then the sale of additional properties is very likely to incur UK CGT.

As Immac so eloquently put it, dual taxation doesnt mean no tax, it means not taxed twice................... Thats a huge difference.

If in doubt contact the IR and see what they say. Fines for non compliance can make your hair stand on end - let alone the other penalties. Dont take my word for it, take Ken Dodd's !!!

Best advice - dont mess with the tax man I hate it too, but what can you do.... Not preaching or judging here but RosehillGirl - have you told the IR and been notified that there is no tax to pay ?


MR TURKEY

rosehillgirl

Hi There,

The original question referred to the CGT situation in Northern Cyprus-not the liability in the UK. We didn't pay CGT in the UK as we weren't living there-we were legally domiciled in the KKTC. The IR in the UK were made aware of this-we even received mail from them regarding our NI contributions. Just thought everone may like to know this.

Ann

juco

Excellent Mr Turkey.
How often are gonna have to repeat this before it sinks in.
You cannot avoid the taxman, you might get away with it for a while but he will catch you in the end.
Most if not all have left a paper trail to Turkey when purchasing....thats all it takes!