Adding another name to the Title Deeds - do-able?

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ZenGeorge
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Joined: 19 May 2014 11:51

Adding another name to the Title Deeds - do-able?

Post by ZenGeorge » 27 May 2014 20:51

Hi everyone,

I'm new to this forum, but it has already answered lots of questions that I had re the sale of our flat in Cyprus (we live in Surrey and are not Cypriot citizens). We bought the flat in 2000 but it only has my name on the Title Deeds, does anyone know how easy it is (and how much would it cost) to add my partner's name to the deeds so we're not fleeced when it comes to Capital Gains Tax. I am under the impression that two names on the Title Deeds = two tax allowances before CGT is paid. Or am I barking up the wrong tree?

Many thanks for your help.

Zen



Nigel Howarth
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Re: Adding another name to the Title Deeds - do-able?

Post by Nigel Howarth » 28 May 2014 10:17

Hi Zen and welcome to the forum.

I'm not sure that you'll be able to save anything on your CGT bill by adding your partner's name to the deed.

To transfer half the property to her, you'd need to gift her 50% of the property - this will cost 0.4% of the property's 1980 value.

But when you sell, she would have to pay CGT on half the total selling price (because she acquired the property at no cost) - and the inflation allowance would be calculated from the date that half the property was registered in her name (2014) whereas your Capital Gains Tax would be reduced by the inflation allowance calculated from 2000.

You'll need an accountant to go through the figures in detail to see if it's worthwhile adding your partner's name to the deed - personally I doubt it.

If you are selling the apartment partly or fully furnished, come to an arrangement with your buyer whereby they purchase any furniture, etc. using a separate agreement. This will reduce your Capital Gains Tax liability as the items included in the agreement should not be liable for Capital Gains Tax. But don't try and fiddle the system by overcharging for the content!

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
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ZenGeorge
Posts: 6
Joined: 19 May 2014 11:51

Re: Adding another name to the Title Deeds - do-able?

Post by ZenGeorge » 28 May 2014 18:56

Hi Nigel,

Thank you for your quick reply. God forbid WE should fiddle the system! My parents are Greek Cypriot and even they don't trust the Greek Cypriots!! It seems like the island has completely by-passed common sense and a straightforward way of buying and selling properties. We didn't get the Title Deeds for three years, but now we need to sell as we hardly go over there on holiday and the flat sits empty most of the time.

We have a great lawyer in Nicosia who did the original conveyancing and ensured that we didn't have the rug pulled from under us and she will again sort out the legalities for us.

I don't suppose we'll bother adding another name to the Title Deeds as it sounds like a real hassle. I did have a conversation with the HMRC here and they were very helpful when it came to double taxation as we would already be paying CGT in Cyprus before our money even leaves the country. So the HMRC said they wouldn't charge the full whack as we would have paid our dues over in Cyprus.

May the force be with us... :lol:

Zen



Pantheman
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Re: Adding another name to the Title Deeds - do-able?

Post by Pantheman » 29 May 2014 17:24

Zen,

Just a note, I would be surprised if you could sell at a profit in today's market anyway, assuming you bought the apartment in the first place and it wasn't a gift.

Secondly, one seems to forget that in order to pay CGT, you would have had to make a profit in the first place and I for one would rather pay 20% of a profit and be left with 80% of something than have 0% of nothing.

If you sell a second home in the UK, you pay this CGT, so it is not so unusual to expect to pay it here.

If you didn't pay it in Cyprus you'd be paying 18% or is it 19% in the UK anyway, so as for fleecing, it looks like you get that wherever.

Good luck with your sale, at least you have deeds ;-)


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ZenGeorge
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Re: Adding another name to the Title Deeds - do-able?

Post by ZenGeorge » 29 May 2014 18:19

Well I'm hoping we'd get a bit more than the Cypriot Pounds 20,000 that we paid for it! Yes, I get all the tax implications both in Cyprus and in the UK, but if we walk away with a few thousand then I'd be happy. I'd like to get shot of the flat as we hardly go there on holiday any more.

We've been a few times up to the 'pan handle' in the north of Cyprus and stayed in huts on the beach, which we loved, but I guess that the southern side of Cyprus is getting a bit too built up and it's more like going on a city break going to Cyprus these days, rather than the relaxing holidays we used to have.

Fingers crossed there's some good news somewhere along the line, selling property in Cyprus all seems so desperate now doesn't it?

Zen
(PS, I'm a woman!)



Nigel Howarth
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Re: Adding another name to the Title Deeds - do-able?

Post by Nigel Howarth » 29 May 2014 18:56

Hi Ms Zen,

Apologies - if you bought in 2000 you should be able to make a profit as this was well before the boom years. CYP20,000 is about €34,000 and I'm sure you could sell at a profit - providing you can find a buyer.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
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ZenGeorge
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Joined: 19 May 2014 11:51

Re: Adding another name to the Title Deeds - do-able?

Post by ZenGeorge » 29 May 2014 19:09

Hi Nigel,

Well I guess there's the rub - IF we manage to find a buyer. We're sort of hoping that we could sell the flat with all the furniture and kitchen appliances in it - the washing machine is only 3 years old. In fact if I think about it, the wear and tear on the furniture and electrical items would only come to around 5-6 month's full use as it was only used for a fraction of the time.

Thanks for your help, it's good to get some useful input from those in the know. The property laws in Cyprus do seem hideously outdated and completely out of line with the rest of Europe.

Zen



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