Builders - latest cash grab?

64Stuart



Joined: 26/07/2010
Posts: 33

Message Posted:
30/07/2010 19:27

Just in the process of completing a sale where we are assuming a contract from an existing owner. Before the builder will agree to the assignment of the contract he wants the VAT. Has anyone heard of this. I was under the impression that no VAT was payable until you received the permission to purchase and the title deeds were ready to be transferred. Now it seems the builder can demand this both on new builds and transfer of contracts.



Stuart

kaiserphil


Joined: 14/12/2008
Posts: 1096

Message Posted:
30/07/2010 19:48

I assume the current owner does not have the title deed? I sold in that circumstance, and the developer had to pay capital gains tax. It was specified in my purchase contract, and the developer did pay it, surprisingly. Maybe your builder wants you to pay his?

Just a thought.

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
30/07/2010 19:54

We had to pay VAT on exchange of contracts and before we were given the keys. I think you will find that all builders and developers will ask for this now. Make certain you get a receipt for this.





The butlers wife

walkerscott


Joined: 13/08/2009
Posts: 901

Message Posted:
30/07/2010 19:57

Again, No deeds, No Money.



The owner is actually the person named on the Deeds. By law, no monies are supposed to change hands before you have your PTP in place.



Many people have built, some more than one house, and not paid the VAT hoping that someone else will pay it later on when they sell on, with or without Deeds!



The more people who refuse to purchase until the PTP is issued the better it will be for all.



I wish you luck!

fosterscan


Joined: 27/02/2010
Posts: 541

Message Posted:
30/07/2010 20:08

Who wants to wait years to get the ptp for the place they want

again no deeds ,no money = no property

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
30/07/2010 20:34

no deeds, no money, no property - no problem! At least not for a prospective purchaser

mrsgee


Joined: 23/06/2009
Posts: 396

Message Posted:
31/07/2010 09:05

Message one - my understanding is that if the VAT was not paid to the builder by the first purchaser, from whom it sounds you are purchasing, then VAT is payable by the subsequent purchaser. VAT, as I understand it is payable on completion of the property and is different to the tax you pay when you get PTP and your Kocan. But I daresay I will be corrected if I am wrong. That is why in some property adverts the agent makes a point of saying that the VAT has been paid, so the new purchaser knows it has.

cyprusairsoft



Joined: 22/06/2009
Posts: 2066

Message Posted:
31/07/2010 10:00

not sure if this is right but if the first purchaser is selling the house on for more then he purchased for

then he can expect the builder to want his capital gains paid on the higher amount

think naiomi stated this. hope this helps

Molly


Joined: 30/08/2008
Posts: 299

Message Posted:
31/07/2010 10:21

Historically, VAT has been paid at the time of transfer of title. However, builders have found new ways to extract more money before the transfer. The tax office say that VAT should be paid once the purchaser takes possession. When paid, the Purchaser must insist on a company VAT invoice (not one knocked up on a pc!). If you do not get this, do not pay.



When the title is ready for transfer (when PTP obtained), the VAT invoice must be presented at the tax office with the transfer documents.



Message 8. In this case, if the property is being sold at a profit, the Contract of Sale between the builder and Stuart (the new purchaser) should be for the same value as the original contract. Therefore, there are no extra taxes to pay. THIS CONTRACT would be used for stamping and official purposes.



An Assignment of Contract between the seller (the 1st purchaser) and the new purchaser should reflect the agreed true sale price and payment terms.

Molly


Joined: 30/08/2008
Posts: 299

Message Posted:
31/07/2010 10:24

PTP - In the current climate and the government's inertia I am also of the opinion that no-one should purchase until the PTP is given.



Talk is cheap and action does speak louder than words.