Conned

Jain and Chris · #22 08-05-2008, 01:19 PM

Hi Runchev, yes what I have written is true.

I think that those British or other foreigners who bought with an under-declared price were in the main told that it was normal practice and told they would save tax but never really asked or questioned this - nor did the agent supply full details on what would happen to them when they came to resell. Some gave power of attorney to the agent and did not find out about the lower price in the deeds until it was too late - being far too trusting. They now find themselves in a horrid capital gains tax situation.

I can't imagine anyone buying a property, if they had been told that they could save 50 pounds tax now but would be liable for maybe 5,000 pounds tax later when they come to sell, would have gone ahead. The problem is that the agents did not explain this - and, fair enough, the buyers did not question this purported 'tax saving' either.

Apart from that, there are also the legalities of the situation - with potentially a void contract, a claim from the state for avoiding tax, etc......

Plus, in many instances it was the agent pocketing the cash or the developer avoiding VAT - and it is the buyer left with the tax situation.

Whilst you say that less than 5% have this problem, we have a person on here talking about it right now, we also have heard from hundreds of readers in this situation; the lawyers who write for the magazine too have hundreds of readers complaining of this problem.

Yes, maybe the foreigners came here with, in your own words, "no idea" but that is no excuse to misinform them.

All the best,