House sale- tax issues

[fran1]

We are in the very sad position of having to sell our house in Turgutreis due to circumstances completely beyond our control!

Does anyone know the answers to the following;

If your house is in a company will there still be capital gains tax to pay when a sale is made?

Can you elect to pay CGT in the UK or do you have to pay this in Turkey?

In the Uk we can keep the first £9,200 profit, is there a similar threshold in Turkey?

What is the rate of CGT in Turkey?

How is CGT in Turkey calculated.

Many thanks in advance for advice

 

[Mushtaq]

You have to pay 20% tax on any profit (cost price - sale price) you make on the sale, you also need to pay KDV (vat) on the sale price.

Running a company in Turkey is very expensive.

 

[fran1]

You have to pay 20% tax on any profit (cost price - sale price) you make on the sale, you also need to pay KDV (vat) on the sale price.

Running a company in Turkey is very expensive.

This might be a daft question Mushtaq but here goes....If my Tapu value shows 75,000YTL from 2008 and property prices have fallen or stayed the same, if I was fortunate enough to get a sale in 2009 can my Tapu value remain the same price? or is there an expectation in Turkey that there would have been an increase in the base Tapu value?(hope this makes sense!)

many thanks

 

[Mushtaq]

Most people still get valuation from the council and use that figure, it might be worth checking what the current value is in your area and then decide.

As the property is in a business name, you also need to check with your account who will have a better idea about how to handle the transaction for you.

A business can lose money on transactions, so there doesn't always have to be a profit, as long as it's all legitimate and can be proven that it's a legitimate transaction then there shouldn't be a problem, again it's something your accountant can best advice you on.

 

[Peregrine]

if your house is owned by a company why not ask your accountant to advise you on tax - after all thats what they do !!

 

[fran1]

Thanks Mushtaq, the Raich Bedel price is actually lower than the price that is shown on the Tapu currently.



Perry, I know that talking to the accountant seems the most logical way forward, but you know that one is often told what they think you want to hear, accountants included-hence why we are in the situation that we are in!

We just need to be 'armed' with the correct information should we be lucky enough to find a buyer.

 

[christinedavid]

I think I'm right in saying that if your house is in your company name in Turkey, then it is your company and not you personally that own it. In the light of this, when it is sold it is your company in Turkey that will be liable for tax on the profit in Turkey.Not you, personally.The UK Inland Revenue will not be interested until you, as an individual, liquidate the company and bring the money back to UK.

 

[jearden]

Yes Christine, that's also my understanding. CGT does not apply in this case and the sales income goes into the company profit and loss account where profits are subject to corporate tax in the normal way.

 

[Peregrine]

Thanks Mushtaq, the Raich Bedel price is actually lower than the price that is shown on the Tapu currently.



Perry, I know that talking to the accountant seems the most logical way forward, but you know that one is often told what they think you want to hear, accountants included-hence why we are in the situation that we are in!

We just need to be 'armed' with the correct information should we be lucky enough to find a buyer.

two good points below

if your accountant is that bad, find a replacement

good luck with it