Capital Gains Tax on apartment

andy46


Joined: 12/09/2008
Posts: 38

Message Posted:
27/03/2009 19:04

Help please,



3 years ago we sold an apartment in Upper Kyrenia. At that time we did not have our PTP so our builder was joined in on the contract of sale.



We have now had a request for the payment of Capital Gains Tax. Does anyone know whether you have to pay this every time you sell property? If so how is it calculated? I do not mean the percentage. In our case we sold the flat fully furnished with new furniture. The Advocate acting for our purchaser has taken no account of this even though it is in the contract. We also paid for extras over and above the contract price so again this reduces the gain. What about Estate Agents fees and inflation?



There is no point contacting our advocate as he has never explained anything crucial to us in the past.



andy

kaiserphil


Joined: 14/12/2008
Posts: 1096

Message Posted:
27/03/2009 19:26

Andy - As I understand it, it depends upon your original contract for the purchase, and how payment of taxes is worded.

In our case when we sold the developer was responsible for payment of CGT, amazingly, he paid!

Our original contract didn't mention CGT specifically but stated the taxes we had to pay, and said that any other taxes were the responsibility of the developer.

andy46


Joined: 12/09/2008
Posts: 38

Message Posted:
27/03/2009 20:10

Kaiserphil-

In our contract of sale to the new owners of our apartment it said the landowner(builder) was responsible for CGT upto date he sold the apartment to us. It was our responsibility thereafter. I am not disputing this but want to know how the gain is calculated.



andy

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
27/03/2009 20:58

Hi andy, every private individual has a once in a lifetime tax free sale option. Explained here - http://nmplegal.com/pdf/GUIDE%20TO%20TAXES%20FOR%20PROPERTY%20TRANSACTIONS.pdf



Cooper

andy46


Joined: 12/09/2008
Posts: 38

Message Posted:
27/03/2009 21:22

Cooper,



Thank you! The demand for the CGT came from Naomi Mehmet's office. This is our only sale and it looks as though we are exempt.



andy46

michelle3012


Joined: 07/11/2008
Posts: 578

Message Posted:
27/03/2009 23:54

You are only intitled to the once in a lifetime tax free sale if the deeds are in your name...if they are still in the builders or the previous owners name then you have to pay CGT.

Molly


Joined: 30/08/2008
Posts: 299

Message Posted:
30/03/2009 17:53

Andy, you need to refer to the Contract of Sale that you signed. Usually if the deeds are still in the name of the builder then they usually pay the majority CGT. You would ordinarily be liable for the profit you made. You need to check the Sale Contract or Assignment of Contract.