Capital gain or loss

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Gabe the Brummie
Posts: 1
Joined: 21 Jan 2019 03:02

Capital gain or loss

Post by Gabe the Brummie »

Hi
I wrote in about 4 years ago whilst i was looking at options to sell a property without deeds. Circumstances changed and deeds are around the corner so need to be looking at taxation implications. Heres the situation............
In 2006 my father and his wife bought a property on a new development with no deeds. They paid the equivalent of 193,000 euro as currency was still in CY pounds. In 2015 his wife abandoned him due to his illness (Alzheimers) to return to the UK. I was asked to buy her share to allow her to return with some funds. My father decided to give me his share whilst he had mental capacity and we completed this by means of an assignment of rights of the original sale agreement. I then became the owner. I am now in the process of purchasing the deeds as they are being issued for the first time. I have a buyer lined up to purchase it once I have the deeds i.e. in a subsequent sale.
My concerns are around tax. I have agreed to sell for 150,000 euro. That means its 43,000 euro less than my father paid for it in 2006. The low value is for various reasons mainly around the inflated prices pre-crash and poor estate management to name two.
What taxation I am exposed to at deed issuance and when I sell shortly after noteing i bought half share in 2015 of my fathers wife and i was gifted the other half. (I reside in the UK).
Furthermore, is this taxed at the land registry or seperately and do i have to register for a tax reference number?
Many thanks
Gabe
Pantheman
Posts: 807
Joined: 26 Jan 2008 14:44
Location: Famagusta District
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Re: Capital gain or loss

Post by Pantheman »

Gabe the Brummie wrote: 26 Jul 2022 19:04 Hi
I wrote in about 4 years ago whilst i was looking at options to sell a property without deeds. Circumstances changed and deeds are around the corner so need to be looking at taxation implications. Heres the situation............
In 2006 my father and his wife bought a property on a new development with no deeds. They paid the equivalent of 193,000 euro as currency was still in CY pounds. In 2015 his wife abandoned him due to his illness (Alzheimers) to return to the UK. I was asked to buy her share to allow her to return with some funds. My father decided to give me his share whilst he had mental capacity and we completed this by means of an assignment of rights of the original sale agreement. I then became the owner. I am now in the process of purchasing the deeds as they are being issued for the first time. I have a buyer lined up to purchase it once I have the deeds i.e. in a subsequent sale.
My concerns are around tax. I have agreed to sell for 150,000 euro. That means its 43,000 euro less than my father paid for it in 2006. The low value is for various reasons mainly around the inflated prices pre-crash and poor estate management to name two.
What taxation I am exposed to at deed issuance and when I sell shortly after noteing i bought half share in 2015 of my fathers wife and i was gifted the other half. (I reside in the UK).
Furthermore, is this taxed at the land registry or seperately and do i have to register for a tax reference number?
Many thanks
Gabe
There will be no CGT to pay. You may even get away with no transfer fees if your father paid vat when he bought it.

You have made no gain and with your allowances, inflation factor, legal fees there will be no CGT.

Good luck with the sale.

btw, if your dad did pay vat, and the buyer buys it now, he will have no TFs to pay, otherwise, once you have the deeds, he will have to pay TFs to register it to him
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