Have Kocan Rules Changed?

japeal



Joined: 12/09/2008
Posts: 1052

Message Posted:
07/09/2011 15:06

Friends are trying to get Kocan, but think builders are trying to rip them off. Property cost 69500, believe they should pay 3% + 5% of the 3% so they should be charged around 2250.00. But builders are saying they need to pay 16000TL. Have rules changed or are they just being ripped off?

Deniz1


Joined: 28/07/2009
Posts: 3829

Message Posted:
07/09/2011 15:30

My house was £40000 when new and the total cost of getting the Kocan and all taxes was £3200. This year.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
07/09/2011 19:42

In a nutshell, Just being ripped off - http://www.nmplegal.com/pdf/GUIDE%20TO%20TAXES%20FOR%20PROPERTY%20TRANSACTIONS.pdf

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
07/09/2011 19:56

msg. 'being ripped off' Not necessarily.

There is no mention in msg. 1 of VAT. Only the transfer tax is referred to ?

japeal



Joined: 12/09/2008
Posts: 1052

Message Posted:
07/09/2011 20:10

Scruff.



Thought the 5% of the 3% was the vat. B

elieve th 3% is for the kocan transfer and the 5% is of the transfer cost.



John

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
07/09/2011 20:13

John please read the link in msg 3, it outlines all the fee's payable.

annie


Joined: 30/05/2007
Posts: 208

Message Posted:
07/09/2011 20:18

Japeal, Not sure why cooper said your friends were being ripped off and then posted a link that confirms the tax payable by your friends as 15658.71 tl at todays exhange rate the difference of 341.29 tl may well be caused by the exchange rate as I understand that one of the taxes is calulated at the time of transfer.



Deniz fees were spot on for a £40000 property under the current rules.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
07/09/2011 20:23

annie i said they were being ripped off because like scruff in msg 1 there was no mention of KDV only transfer tax.

japeal



Joined: 12/09/2008
Posts: 1052

Message Posted:
07/09/2011 21:15

Looks like the vat is not % of the transfer fee then but of the contract price? Capital Gains tax should be paid by builder, stamp duty already paid.

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
07/09/2011 22:33

There is a very minimal sum that is paid to the Belediye at the time of transfer. It is additional to the Transfer Charge payable to the Land Registry, but is a percentage of the Land Registry transfer amount. I think this is at 5% of the 3% amount that you were referring to in msg. 1.

VAT has always been 5% of the contract price.

Just to make things simple. These would be the amounts payable on a house with a contract value of £100,000.

VAT @ 5% = £5,000.

Transfer Tax @ 3% = £3,000.

Belediye sum 5% of £3,000 = £150.

Total = £8,150.

joseph


Joined: 17/04/2008
Posts: 709

Message Posted:
08/09/2011 00:59

Japeal, why on earth haven't your friends or self simply rung your advocate and asked how much tax they are liable for on the property?



Anyway ... by my workings Annie and Scruff are pretty well spot on.



Based on a property contracted at £69500 the tax liability ....presuming stamp duty was paid early to take advantage of lower rate... I would estimate at £5560.



If you are being asked for 16000tl then an exchange rate of 2.88 is being applied.



Again it may/may not include stamp duty as mentioned and Belediye's council tax.



Finally; liabilty would rise if permanent extras were written into the contract such as pool, sun/roof terrace etc



But again... one call to your advocate ...



Regards Joseph

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
08/09/2011 08:23

The fee payable to the Belediye at the time of transfer is actually only 1% of the transfer fee so in your friends case would only amount to about £21

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
08/09/2011 10:25

Cooper is right it is only 1% of the transfer fee. After 2006 most builder/developers were asking for the VAT at the time of taking over the occupancy. I would check that you have not already paid this.







The butlers wife

japeal



Joined: 12/09/2008
Posts: 1052

Message Posted:
08/09/2011 11:09

Personally I was told to make a payment to the builder on getting the keys which I did and was then told that 5% vat of transfer fee would be payable on getting Kocan. Hopefully which I am checking on, my final payment to builders was the vat included in the price of my contract but will wait to find out. My friends were told that they would be paying less but now are being told over £5500.

stellasstar1



Joined: 02/07/2008
Posts: 1519

Message Posted:
08/09/2011 12:19

I am just looking at my sheet that my solicitors gave me for paying my taxes. First of all the current value is transferred to lira (at that days rate) and then taxes are worked out. Unfortunately I was quoted when the exchange rate was 2.6, and while waiting for my time deposit to mature,to withdraw the money and pay, it jumped to 2.85, which meant what I had to pay jumped. So now waiting for it to go down agan, before I pay.

scruff


Joined: 15/07/2008
Posts: 1070

Message Posted:
08/09/2011 12:20

msg 12

I stand corrected Cooper, but agree with you. I had thought it was 1% but it seemed smaller than the cash amount that I recalled.