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Old 11.09.2007, 12:52
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Tax back for mortgage payments in the UK

I have recently had a meeting with my tax advisors that my company has appointed for me to go through what i need to be preapred for in preparing a tax return next year.

They asked me the usual questions about how much i earn (which they already knew ??) and whether me or my wife had any additional income. I mentioned to them that we still have a house in the UK which we rent out and obviously still have a mortgage for. They told me that i could use the mortgage statement showing the interest payments from the house in the UK to submit against my overall tax liability here and this would then lower my tax which is due.

Does anybody know if this is correct ?
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Old 11.09.2007, 13:03
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Re: Tax back for mortgage payments in the UK

(This has been answered before here.)

Answer: Yes, but.

If you already claim relief in the UK, as you should against the rental income, you can't (legally) claim it twice. Additionally if you claim the mortgage interest here, the Swiss authorities will add the value of your house to your wealth and tax it. You may want to do this anyway if you intend to sell and bring the capital to Switzerland...
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Old 04.10.2007, 14:23
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Re: Tax back for mortgage payments in the UK

I don't know much about the mortgage system in uk because i am not staying in uk but on other country. But i have a good site which will give you some information on mortgage payments.

http://www.easyhousemortgage.com/
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Old 04.10.2007, 14:53
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Re: Tax back for mortgage payments in the UK

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I don't know much about the mortgage system in uk because i am not staying in uk but on other country. But i have a good site which will give you some information on mortgage payments.

http://www.easyhousemortgage.com/
This looks like spam for a google adwaords cash-cow site...
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Old 11.10.2007, 12:29
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Re: Tax back for mortgage payments in the UK

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(This has been answered before here.)

Answer: Yes, but.

If you already claim relief in the UK, as you should against the rental income, you can't (legally) claim it twice. Additionally if you claim the mortgage interest here, the Swiss authorities will add the value of your house to your wealth and tax it. You may want to do this anyway if you intend to sell and bring the capital to Switzerland...
Seems to vary by Canton. Long thread here....

Swiss tax deductions - UK mortgage interest?
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Old 16.08.2009, 12:22
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Re: Tax back for mortgage payments in the UK

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Seems to vary by Canton. Long thread here....

Swiss tax deductions - UK mortgage interest?
FOR THE RECORD: always look at the tax treaty:
http://www.admin.ch/ch/f/rs/0_672_936_712/a6.html

The text is identical to that in the US-Switzerland Tax Treaty, Art. 6:

"Art. 6 Income from Real Property
"1. Income derived by a resident of a Contracting State from real property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.

In principle, all revenue, domestic or foreign, is included in taxable income: http://bit.ly/nL2jx

In the absence of the word "only" the State of residence can also tax the income, giving credit for tax paid to the State where the property is located. Compare the provisions in the US treaty for pensions:

Art. 18(1) "Subject to the provisions of Article 19 (Government Service and Social Security), pensions and other similar remuneration beneficially derived by a resident of a Contracting State in consideration of past employment shall be taxable only in that State.

(Also essentially identical in the two treaties)

For US citizens in Switzerland there is some advantage to having US tax imposed first, since then state tax, if any, should also be creditable against Swiss tax.

I post this for the record in case anyone needs to refer to the sources. Taxpayers with UK income may find Simon's Taxes useful. I don't know of any publicly available in Switzerland ( http://opac.rero.ch ); for UK libraries try http://copac.ac.uk
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