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Old 30.11.2015, 10:17
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CGT on foreign property

We live in Switzerland and have just sold a property in the UK. Is there capital gains tax to be paid in Switzerland?
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Old 30.11.2015, 13:17
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Re: CGT on foreign property

This depends:

- Was CGT paid in the UK? or was this you sole residence sold to move here?
- Have you previously shown the property on your Swiss tax form? If so does it actually show a gain on sale??

My experience is that the Swiss local tax office and the Notariat (legal department when buying/selling a property) work very closely on sales here. However, your Swiss tax office will only be informed by you of a sale in the UK.

Obviously if you shift the capital over here, the Swiss tax man will need to know from whence this came. You should be declaring your world-wide assets.

I certainly did not declare any gain, nor was I asked, I just declared the value...
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Old 30.11.2015, 19:41
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Re: CGT on foreign property

I'm pretty sure Swiss CGT (for fixed property) applies only to property that is located within Switzerland. Your 'wealth' (for wealth tax) may be affected, as you probably had previously declared it below market value as part of your wealth (perfectly correctly), but now would have the cash at full market value as part of your wealth.
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Old 30.11.2015, 20:37
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Re: CGT on foreign property

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We live in Switzerland and have just sold a property in the UK. Is there capital gains tax to be paid in Switzerland?
No, only non moveable assets in CH are liable to CGT.

If it was an investment property & you return to the UK within 5 years of leaving, you will have CGT to pay in the UK on your return. You may also be liable to any gain since the 6/4/2015
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Old 30.11.2015, 23:48
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Re: CGT on foreign property

Best thing to do with UK property is make sure it is your PPR before you leave, let it out while you are gone, and make sure it is your PPR when you return.

That way you maximise your PPR relief which used to be up to 100% even with 7 years absence, now reduced to 5.5 years. On top of that you have the private lettings relief which can wipe out up to another £40k of gains.

All in all, the tax rules for UK property are pretty generous and with the right planning you should be able to pay little or no tax.
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