No Capital Gains Tax, No Inheritance Tax - how does this work

[dave99]

I've been told many times that there will be No Capital gains tax or Inheritance Tax to pay on property in Egypt, but I've not been able to find any Tax laws to back this up.

Is there an Account or Lawyer that knows which laws govern this and why the Tax laws in the UK do not apply.

[Muzz]

I understood that the laws of the country you reside in apply

[dave99]

Hi Muzz

That's what I've been told before but I'm hoping that one of the Legal experts on the forum might offer something more specific, and reference the appropraite Egyptian laws.

[queenie40something]

I have asked Zeiad to have a look at this thread and maybe he can spread some light on the subject.

[Mark .Y.]

Originally Posted by dave99

I've been told many times that there will be No Capital gains tax or Inheritance Tax to pay on property in Egypt, but I've not been able to find any Tax laws to back this up.

Is there an Account or Lawyer that knows which laws govern this and why the Tax laws in the UK do not apply.

This is incorrect Nigel and many agents know this, they just prefer not to mention it. They fall back on phrases such as "it is all down to the individual's personal situation" which of course it is - but thats exactly as it is in the UK.

Whilst there may be no CGT or Inheritance Tax payable in Egypt itself, for a domiciled UK resident the usual rules apply. So, if you make a Capital Gain when you sell your apartment in Egypt and that takes you over the allowance (approx £9K pa) then CGT is due and HMRC will expect you to report the gain.
The good news is, if husbands and wives/partners buy the apartment in joint names then you have two lots of annual allowances.
There also used to be indexation/taper relief to help offset the gain but I think all the CGT rules have changed recently and am not up to date.

IHT is also payable on your worldwide assets (assuming you go over the tax-free band (about £280K I think at the moment).

Mark .Y.

[queenie40something]

Hi Mark - thanks for the information - certainly sounds like you know your stuff. As alot of people are nearing completion these are the sort of things that they need to start considering.
By the way hows the apartment hunting coming along??

Thanks again
Alison

[Mark .Y.]

Originally Posted by queenie40something

Hi Mark - thanks for the information - certainly sounds like you know your stuff. As alot of people are nearing completion these are the sort of things that they need to start considering.
By the way hows the apartment hunting coming along??

Thanks again
Alison

Hi Alison,

We have put everything on hold at the moment. I am carefully watching the prices in the US and the £/$ exchange rate as I feel if things continue the way they have been going for, say, another 8-12 months the US will offer the best value for money around.
If we get to $2 to the pound clear and the prices continue to fall a decent 3 bed 2 bath apartment on a complex in Florida will be available for around £35-40,000. Flights, although longer, are usually available around the same price as Egypt.
Having said that, I am still watching the Egyptian market !!

Mark .Y.

[queenie40something]

Hi Mark - good luck with wherever you choose and keep us updated.