Discount on applying for your deeds now

smithy


Joined: 17/07/2008
Posts: 5301

Message Posted:
13/01/2009 13:25

Can anyone help, I have just been told that even if your Kocan is not ready now, but if you pay a.s.a.p you get 75% Discount, does anyone know when this first started and how long do you have before the discount they offer expires. Info would be appreciated.

Smithy

puppylover



Joined: 05/05/2008
Posts: 1427

Message Posted:
13/01/2009 13:43

We had a phone call from our builder last night in regards to this.

He stated that the discount will be given up until the election date (April 19th)



Our Kocan for the house is not ready. However our builder is preposing to transfer the deeds to the land in order for us to claim the discount and then the house can be added to the land kocan at a later date for £50.



By paying the tax/KDV before April we will save £2,225.00

Newboy


Joined: 21/02/2008
Posts: 80

Message Posted:
13/01/2009 13:52

According to HBPG web site there is a temporary reduction in title transfer tax. They are unsure when this actually comes into force, so their is no rush. Best to keep an eye on the web site for good information.

smithy


Joined: 17/07/2008
Posts: 5301

Message Posted:
13/01/2009 13:57

puppylover, thank you so much for the info, so its worth looking into, to save that sort of money, many thanks again

smithy

kateo


Joined: 13/01/2009
Posts: 22

Message Posted:
13/01/2009 15:29

Hi there, yes it came into force yesterday and is supposed to be for 3 months only..

smithy


Joined: 17/07/2008
Posts: 5301

Message Posted:
13/01/2009 15:37

Hi Kateo That's what I found out, it did come into force yesterday but wasn't sure if it was for 2/3 months, many thanks

smithy

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
13/01/2009 15:57

Do you think it could be a bit of a gamble to pay for your deeds now given that the talks are still going on?

jay76


Joined: 17/07/2008
Posts: 532

Message Posted:
13/01/2009 16:02

does it not make you wonder why

Chicken Run


Joined: 11/10/2008
Posts: 252

Message Posted:
13/01/2009 16:08

This discount will run for three months until the election is over. It is 75% reduction on the Stamp duty (transfer of title tax)... which for first time buyers is currently 3%. The VAT (KDV) is still fixed at 5% with no reductions. The Stopage (Capital gains tax) that is paid by the developers has also been temporarily reduced by 2% - down from 6.25% to 4.25%.



However, you cannot pay your stamp duty until the transfer of title takes place... and that can only happen if you have your PTP.

Newboy


Joined: 21/02/2008
Posts: 80

Message Posted:
13/01/2009 16:27

What does the discount apply to:- contract price paid or current market price?

Chicken Run


Joined: 11/10/2008
Posts: 252

Message Posted:
13/01/2009 16:28

Contract price... which you should have registered at the land registry.

kibrissibel


Joined: 18/02/2008
Posts: 562

Message Posted:
13/01/2009 16:43

Chickenrun re your message 9 - just for clarification, this is not a reduction in Stamp Duty. It is a reduction in the property transfer tax which is payable only on transfer of title deeds. Stamp duty is another tax entirely.



Sibel

Chicken Run


Joined: 11/10/2008
Posts: 252

Message Posted:
13/01/2009 16:52

No. Stamp duty, or transfer of title tax, is the same thing. This is 6% of the purchase price reduced to 3% on the first purchase. There is a 75% reduction on this tax.



The other tax is KDV (VAT) which is 5%... this is unchanged.



For example: My contract price is £90,000.



5% VAT is 4500

3% Stamp duty is 2700 (with 75% discount it is just £675)



If my PTP comes out in the next 3 months, and I really hope it does, then I will save £2025... PLEASE GOD let it be!!!!! ;o)

kibrissibel


Joined: 18/02/2008
Posts: 562

Message Posted:
13/01/2009 17:01

Stamp duty is contract tax. It is what you pay to the tax office and it is 0.5 - 1.5% of the value of your contract. (Depending on when you pay and any penalties incurred.)



Property transfer tax 3% or 6% (you are allowed once in a lifetime 3%) is what you pay to the land registry to transfer title to you. These are two separate things.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
13/01/2009 17:13

Kibrissibel you are quite correct, this link explains all taxes payable - http://nmplegal.com/pdf/GUIDE%20TO%20TAXES%20FOR%20PROPERTY%20TRANSACTIONS.pdf



Cooper

Chicken Run


Joined: 11/10/2008
Posts: 252

Message Posted:
13/01/2009 17:29

kibrissibel



You are right, they are 2 seperate things, but they are both called stamp duty.



There are 2 types of Stamp duty - one you pay when you have your contract stamped which is just 0.5% of the contract value (unless you don't do it within 21 days). This is unchanged.



The other stamp duty is for transfer of title and is 3% or 6%. This is the one that has been reduced by 75%.



The 5% KDV (VAT) that you also have to pay on transfer of title is also unchanged.

Chicken Run


Joined: 11/10/2008
Posts: 252

Message Posted:
13/01/2009 17:35

The 3%/6% was always called Stamp duty, but then early last year they introduced a 0.5% contract stamp duty, so some people now call the 3%/6% transfer tax. Sorry... having signed over 2 years ago the 3%/6% is still what i call transfer of title stamp duty... with the 0.5% being contract stamp duty.



Anyway... i think we all know what's been reduced now and how much it will save you!

karakum5c



Joined: 18/03/2008
Posts: 1021

Message Posted:
13/01/2009 17:43

Does anyone know how long PTP is taking at the moment?

Newboy


Joined: 21/02/2008
Posts: 80

Message Posted:
13/01/2009 17:48

Kibrissibel/Cooper, i'll go with your logic and links.

smithy


Joined: 17/07/2008
Posts: 5301

Message Posted:
13/01/2009 17:58

i do come up with some useful infomation sometimes

deecyprus4


Joined: 27/07/2008
Posts: 3452

Message Posted:
13/01/2009 18:36

My solicitor mine konat said 2 years, that was last friday Karakum

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
13/01/2009 18:38

Neighbours of mine who applied for PTP in Jan 2006 still have not got it. Most of the rest of us have so there's no reason why the Military take so long making a decision.

wattys


Joined: 07/10/2008
Posts: 278

Message Posted:
13/01/2009 18:40

Applied September 2006 just come through

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
13/01/2009 19:15

I think the permission to purchase takes two and half years give or take a couple of months. Bought our property June 2006 and received permission end of October 2008.



The Butlers wife

Molly


Joined: 30/08/2008
Posts: 299

Message Posted:
14/01/2009 09:34

If you have permission to purchase and the separate title deeds are not yet available, ask your Vendor if you can have shared title. You only pay these taxes once and the discount is for 3 months only. Separate title deeds can be issued later.

sienna


Joined: 09/01/2009
Posts: 1627

Message Posted:
14/01/2009 11:11

presumably though you can only take adavantage of this if your deeds are ready to be transferred - is this correct?



Or can you pay this transfer tax anyway, but then if the title deeds are not ready, but who is to say that they will ever be handed over and your have paid all the relevant taxes



thank you for answers in advance

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
14/01/2009 11:14

We bought our property in 2003. Received PTP in 2007.

allycatthree


Joined: 22/04/2008
Posts: 86

Message Posted:
14/01/2009 14:51

A little more info to add. The tax rate 0.75% will be calculated in ytl at the rate prevailing on the day the contract was signed or the day you pay which ever is more in ytl. At the low rate today in £ it could cost a little more. So I am told???

maggie


Joined: 25/03/2008
Posts: 192

Message Posted:
14/01/2009 15:21

My solicitor Mine Konat has just advised that my permission to purchase has been received (two years 4 months after possession of my villa). I paid my stamp duty last March 08. Transfer Tax is different from stamp duty. Mine Konat has advised that the Transfer Tax is 25% of contract price of property.

I have asked whether you can pay the transfer tax separately from the 6% VAT.

cooper


Joined: 23/10/2007
Posts: 3386

Message Posted:
14/01/2009 16:12

Hi maaggie i think you have the taxes mixed up, see message 15 above.





Cooper

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
14/01/2009 18:03

Maggie, Transfer Tax is 6% of contract price (or 3% for one time only). This is currently being discounted by 75% so will be either 1.5% or 0.75% respectively. VAT is 5%.