Market valuation in Cyprus for a previous year for UK CGT

[PHG]

Hi

We are selling a property in Paphos and it appears we will have no CGT liability in Cyprus but we will probably have a liability in UK.

This is because the property is inherited and for the Cyprus CGT, the original purchased value in Cyprus (in 2004 when our deceased father originally purchased the property + indexation + costs + allowances) will be in excess of the likely sales value. Therefore there will be no CGT payable in Cyprus to offset against UK CGT under double taxation treaty.

However there will be a liability in the UK because it is calculated on a different basis - ie in the UK it only considers the gain since it was inherited (from date of death which was 2018) and is payable at 18%/24% depending on total income/gains, less a small individual annual allowance of £3,000. We are assuming there has been a gain between 2018 & 2024 (no indexation allowance in UK) so CGT will be payable.

My question is as there is no inheritance tax to pay in Cyprus and as our father was Cypriot tax resident there was no probate value (real market value) assigned to the house in 2018 when he died. For UK CGT we need to use a market value on date of death as the acquired value but the only value we have is a Cyprus land registry value which is not directly relevant to market value (& would be lower than market value). We want to use a market value rather than the land registry value as this is the correct way to do it and will produce a lower gain / liability.

My question - What is best way to get a market valuation for an existing property as at 6 years ago in 2018?

Has anybody else done this previously for UK CGT purposes and can you share your approach / experience?

I see there is an organisation called 'Association of Scientific Appraisers and Real Estate Consultants of Cyprus'. I'm thinking they may be able to do this for us. Has anybody used them or have any experience with them?

thanks

[Nigel Howarth]

Hi PHG and welcome to the forum.

Firstly, your CGT liability in Cyprus may be calculated at Capital Gains Tax Calculator. Note that the 'Cost of acquisition' is what your late father purchased the property. (You will need to have this confirmed by an accountant as I suspect the calculator assumes the property has been your primary home from the date of it of its acquisition.)

Secondly, to get a valuation of the property from the date you inherited, there are two options:

1. A RICS Valuation surveyor - see Surveyors in Cyprus.

2. A member of the Association of Scientific Appraisers and Real Estate Consultants of Cyprus. (website in Greek - use Google Chrome to translate.)

(I suggest you contact Renos Pitros & Son Ltd. The company's based in Paphos and I also know Renos' son Dr. Charalambos Pitros.)

Regards,

[PHG]

Thanks for the response, links & referrals much appreciated.

Rgds
Phil