Tax allowance

Chris



Joined: 3/26/2008
Posts: 438


Message Posted:
5/26/2008 11:01:

I dont know if anybody can answer this, but if you have money in a high interest account, the interest earned is taxed, like UK, if you are not working, are you allowed a tax allowance?

Chris

wynyardman



Joined: 12/15/2007
Posts: 1629


Message Posted:
5/26/2008 11:19:

No money left! Builder had it all. Sorry can't help



Cheers Chris, Good luck!



wyn

elko2



Joined: 7/24/2007
Posts: 386


Message Posted:
5/26/2008 11:35:

A very interesting question. The interest you earn is taxed at source and that is the end of it althrough on tax returns they do ask how much money I earned in interest. I skip that question because it is already taxed.



I am not an accountant but in my view, the tax deducted at source should be recoverable if your total earnings is less than the yearly allowance. Bear in mind that in TRNC, earnings from pensions is tax free.



Presumably the way to go about it is to ask the relevant bank if they can give you a written statement abolut how much interest you earned and how much tax deducted in the previous year. I am sure that will be the first demand of its lind and you will get some funny looks. Let us know how you get on please.

ismet

Chris



Joined: 3/26/2008
Posts: 438


Message Posted:
5/26/2008 11:43:

Thank you Ismet, I will let you know-Im use to funny looks!!



Wyn,

dont worry, you can always rely on me for your effes, if you fall on hard times, I will be the one hanging around Girne with cat and mobile home(cardboard box)



Chris

PIPIE


Joined: 1/5/2008
Posts: 815


Message Posted:
5/26/2008 1:42:0

Elco .

Is that tax free on TRNC pensions or does it apply to UK paid pensions as well ?

wynyardman



Joined: 12/15/2007
Posts: 1629


Message Posted:
5/26/2008 1:44:0

Never mind Chris

The cat will keep you warm at night. Thanks for the offer on Efes though.

I thought maybe I could kip down in the builders hut on our site.



wyn

elko2



Joined: 7/24/2007
Posts: 386


Message Posted:
5/26/2008 1:46:0

Pipie,

That is another good question. I will look up the relevant law when I have time and comment on it.

ismet

wynyardman



Joined: 12/15/2007
Posts: 1629


Message Posted:
5/26/2008 1:52:0

elco2,



Arn't UK pensions taxed at source?



wyn.

PIPIE


Joined: 1/5/2008
Posts: 815


Message Posted:
5/26/2008 1:53:0

Thankyou Ismet

Chris



Joined: 3/26/2008
Posts: 438


Message Posted:
5/26/2008 2:17:0

So theoretically, if they are being sent over to NC they are being taxed twice.



Wyn, you didnt tell me you had a builders hut-how much does he charge per month?

Chris

wynyardman



Joined: 12/15/2007
Posts: 1629


Message Posted:
5/26/2008 2:24:0

Chris,



I checked with my IFA and he told me that they were taxed in the UK at source. You would not be taxed in the TRNC on your pension, but presumably you would at source on your bank interest. If correct, your question to Elko remains legitimate.

Get a formal response in writing from an IFA, would be my best advise.



wyn



The builders hut is all male! Could be more fun than the villa, this!

elko2



Joined: 7/24/2007
Posts: 386


Message Posted:
5/26/2008 6:46:0

OK folks, I have checked it out. According to our tax law, in effect pensions payable in accordance with the laws of TRNC are exempt from tax.



So if we must act within the law, pensions from UK should be taxable in TRNC if over the personal allownace. There is a prevention of double taxation agreement between UK and south Cyprus but not with TRNC.



In reality, nobody bothers with such things. If they did, the first thing they should do is tax Turkish Cypriot workers who work in the south and live in the north. This is the law but nobody would ever dare it.



Now what was all that about the hut? I hope Tidio does not know about it. Those who are members of VO will know what I mean

ismet

Chris



Joined: 3/26/2008
Posts: 438


Message Posted:
5/26/2008 7:20:0

Thanks Ismet for all the information.

The builders hut asides are me taking the rip out of my current situation as I will probably be homeless for 6 months unless I can find somewhere to rent due to the builder not bothering to tell me there would be no water or electric nor builders electric on my villa for another 6 months or so!!

Chris