inheritance tax in NC

wattys


Joined: 07/10/2008
Posts: 278

Message Posted:
28/11/2011 13:31

If you own property in NC and it is in joint names would your wife/husband be liable for inheritance tax if one dies.

I have friend who as a property in spain who has been hit with a huge tax bill now her husband has died.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
28/11/2011 13:39

If you go on to Naomi Mehmet's website I'm sure there is some info.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
28/11/2011 15:28

If its joint ownership I presume it to be 50-50 in which case 50% will be subject to inheritance tax. However not to worry too much about it if its only a house. At one time there was some talk of abolishing inheritance tax altogether but I think nothing has been done about it. As it stands I think 35 times the yearly minimum wage is exempt from tax. Then you get a little bit more exemption for spouse and children. The minimum wage at the moment is about 1300 TL per month. Thus 1300*12months*35years= 546,000 TL or roughly 190,000 GBP. So if the house is worth less than 380,000 GBP, there is nothing to worry about.



You should worry more about inheritance because if there is no will, the remaining spouse gets only 1/6th of the Estate and the rest goes to children.

ismet

tomsteel


Joined: 22/06/2009
Posts: 482

Message Posted:
28/11/2011 20:06

Elko 2 - is not inheritance tax (IHT) in TRNC based on world-wide assets and not just assets in the TRNC. I have been advised IHT in the TRNC is currently 1% of TOTAL assets.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
28/11/2011 21:21

Tomsteel,

I have just looked up the law and I was amazed to see that the exemption is only 20 times the yearly minimum wage. the remainder is subject to 1% tax. It should be based on the assets in TRNC. What other countries tax in their own countries is their business in my opinion.



Sorry about the mistake, this is what happens when we write from memory!!!

ismet

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
28/11/2011 21:44

Ismet you say "should be based on the assets in the TRNC" that is what I think but I am lead to believe the law states it is ones world-wide estate as suggested by tomsteel. Can you put us right?



Thanks

tomsteel


Joined: 22/06/2009
Posts: 482

Message Posted:
28/11/2011 22:11

My UK-qualified but TRNC-based fin advisor is convinced TRNC IHRT is based on world-wide assets. I will check with my local advocate soon and let CT44 know his thoughts.

tomsteel


Joined: 22/06/2009
Posts: 482

Message Posted:
28/11/2011 22:12

elko - VMT.

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
28/11/2011 23:09

The law simply talks about the Estate and I have no doubt the taxmen would love to tax anybody on all his assets in the world. The same thing goes for income tax but I have not heard of anyone paying income tax in TRNC for his earnings abroad. Its all a matter of proof. There is also the problem of double taxation since there is no agreement between TRNC and other countries.

ismet

wattys


Joined: 07/10/2008
Posts: 278

Message Posted:
29/11/2011 11:00

Many thanks everyone