mike6470

Hi everyone, I'm a new member, have had a brief look around the site and it seems very informative. But I couldnt see anything on the questions I have.

1.
I own a villa in Akbuk, if I ever sold it would I be liable for any costs/taxes etc in transfering the proceeds back to the uk?

2.
Would I be able to sell the property to a uk resident, they pay me from their uk bank account, (therefore no large amounts of money being transfered from turkey to UK) obviously pay the estate agents fees as usual from within Turkey?

Many thanks

Mike.

mushtaq

Hi Mike, welcome to the forum.

1. You need to confirm with a qualified person but in most cases you will be liable to tax in UK on the profits.

2. You just need to make sure you sort all this out in a contract, which you would in most cases need to do over there in Turkey, but you can specify how and where you want to receive your money.

tonytg

You would be liable to capital gains tax unless you have owned it for some time as it works on the difference between buying price and selling price (minus costs/ estate agents commission) and the CGT allowances for each year you have owned. If you are not working you can also use your Personal allowance to further reduce your liability. Finally if you own the property in joint names then you both can each use your own CGT allowances which is twice as good ! Remember though that you are liable for Turkish tax on the house if you have owned it for less than 4 years.

kaplumba

Yes you are liable for CGT in both countries - in Turkey if you have owned it for less than 4 years. There are reciprocal tax agreements between Turkey and UK meaning that you don't get taxed in both countries, however the info I got from a Turkish bank manager and a UK tax inspector was that you pay the Turkish tax first. If you have paid tax on it in Turkey you then declare that in your tax return in uk they have to know about it even if they don't tax it. Of course if you sell after 4 years you will have to pay CGT in UK anyway. This is when it pays to have property in joint names as you both have allowances to offset against it. Keep all receipts for absolutely everything you spend during the purchase and for any improvements you make as these can also be offset. When the time comes for me I will get an accountant to do it. I have also been told that when large sums of money are deposited in UK bank accounts especially from abroad. UK banks inform inland rev. Don't know how true that is though.
If it's any help we had to pay about £11K CGT on a £55K gain in UK. That was in 2 names.
Just another thought one of us is a higher rate tax payer and the other just slipped into it for cap gains so if one of you is not working it might be a good idea to seek advice as to whether youd be better off having it in the non workers name.

carolandrob

Hi, just found this thread, if you live in Turkey having sold everything in the UK, you then sell your property in Turkey after four years, do you have to pay this CGT or is that only if you still reside in the UK, all this stuff is beyond me so any advice would be very welcome

chris

I've just been robbed my bank have charged my £55 for a transfer to Turkey I sent double the amount over in October they only charged me £37.
On the website they quote maximum of £35 so does this mean the bank in Turkey have charged me £20 ?
I have complained to my bank will let you all know the outcome.

Chris.

GarryP

There are some existing threads already about charges on bank transfers. Try doing a search on 'transfer' and you will find them