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Old 30.08.2013, 19:45
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Capital gains tax rule in CH for sale of a UK property?

Hi
I assume this thread has been answered elsewhere but I can't find one, so apologies.

I'm english, previous resident in UK (left in 2000). I bought a small house as an investment buy-to-let in the UK in 2003 (I was resident in France at the time). It was not my primary home either.

I moved to CH in 2008. I now want to sell the house. Under UK tax laws, i think I'm exempt from Capital Gains tax as I have been non-resident for more than 5 years. The increase in value itself is not massive (probably only 30-40k). Any equity I will benefit will be mostly from paying off the capital through the mortgage.

Any advice on how capital gains may apply in switzerland? Just a rough idea of treatment will help as I have no knowledge today...

Many thanks, Jammidge
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Old 30.08.2013, 20:05
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Re: Capital gains tax rule in CH for sale of a UK property?

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Hi
I assume this thread has been answered elsewhere but I can't find one, so apologies.

I'm english, previous resident in UK (left in 2000). I bought a small house as an investment buy-to-let in the UK in 2003 (I was resident in France at the time). It was not my primary home either.

I moved to CH in 2008. I now want to sell the house. Under UK tax laws, i think I'm exempt from Capital Gains tax as I have been non-resident for more than 5 years. The increase in value itself is not massive (probably only 30-40k). Any equity I will benefit will be mostly from paying off the capital through the mortgage.

Any advice on how capital gains may apply in switzerland? Just a rough idea of treatment will help as I have no knowledge today...

Many thanks, Jammidge
No tax to pay in ch, only Swiss real estate taxable!
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Old 30.08.2013, 21:34
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Re: Capital gains tax rule in CH for sale of a UK property?

Presumably whatever sum he ends up with will need to be counted as part of his wealth tax though, doesn't it?
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Old 30.08.2013, 23:42
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Re: Capital gains tax rule in CH for sale of a UK property?

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Presumably whatever sum he ends up with will need to be counted as part of his wealth tax though, doesn't it?
Yes, however the house should have also been counted, so in theory no change if the valuation was somewhere near it's market value.
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Old 31.08.2013, 11:02
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Re: Capital gains tax rule in CH for sale of a UK property?

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Yes, however the house should have also been counted, so in theory no change if the valuation was somewhere near it's market value.
Being pedantic, some change as the property was not wealth taxed, but just used to arrive at the wealth tax rate, whereas the cash will be taxed, also no way you should be listing properties at anywhere near their market value for wealth tax purposes. But the net effect is probably on a few chuffs.
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Old 01.09.2013, 18:40
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Re: Capital gains tax rule in CH for sale of a UK property?

Thanks a lot for the advice, I feel reassured that I won't get hammered as was worried by this. Not sure how the wealth tax works, but will look into this now
Thanks again, jam midge
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Old 02.09.2013, 11:18
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Re: Capital gains tax rule in CH for sale of a UK property?

There is no capital gains tax in Switzerland, at least in the way it operates in the UK.

Instead you have to pay a "fortune tax" based on the assests you own on 31 Dec every year. This includes bank balances, cars, properties, land, etc. The annual tax is fairly small, usually < 1 per thousand.

So if you have an expensive vase that you sell for profit, you wont pay any capital gains tax, but next year your combined "fortune" will be slightly higher. What's more, foreign property is excluded from your "fortune", so you dont pay fortune tax for it, but foreign cash is included (but as mentioned, we are talking of an extra tax of a few 100s per year a most).

The only exception is Swiss real estate, which has capital gains tax, and can be high if you sell a swiss property in the first few years after you got it.

Other thing to know, is that Unlike UK, Swiss tax "gifts". In the UK you gan give a home (or anything valuable) as a gift to someone (eg relative) tax free, as long as the previous owner doesnt die within 7 years (or inheritance tax may be due). In Switzerlad gifts are taxable.

So many people do this:
- when living in the UK => time to "gift" some valuable items (eg money) to my children / relatives
- when living in Switzerland => time to sell my shares, and other valuables for profit.
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