English Forum Switzerland

English Forum Switzerland (https://www.englishforum.ch/forum.php)
-   Finance/banking/taxation (https://www.englishforum.ch/finance-banking-taxation/)
-   -   Can you claim expenditure on a house abroad? (https://www.englishforum.ch/finance-banking-taxation/297197-can-you-claim-expenditure-house-abroad.html)

Boo Radley 13.03.2020 15:26

Can you claim expenditure on a house abroad?
 
Hi all,

When I moved to Switzerland I rented out my home back in the UK and still continue to do so. It's a small 2 up 2 down cottage style place which I have to constantly maintain due to it's age (built in 1880) and I've been spending a fair amount on it these past few years just to keep it livable for the tenant.

A friend told me recently that I should be able to claim back some of the expense through my Swiss tax return as it is viewed as 'maintaining an asset'. Has anybody here done this before? Or could you advise if you think it would be possible?

As always, many thanks in advance for any advice.

Homer 13.03.2020 15:33

Re: Can you claim expenditure on a house abroad?
 
Where are you declaring the income from the rental?
I put down such items on my UK Tax return.

Mullhollander 13.03.2020 15:49

Re: Can you claim expenditure on a house abroad?
 
For Ct. Zurich tax purposes, the OP can either claim actual (effektiv) expenses for property maintenance or take a 20% deduction (pauschal) against rental income on the property.

omtatsat 13.03.2020 17:04

Re: Can you claim expenditure on a house abroad?
 
Quote:

Originally Posted by Boo Radley (Post 3158077)
Hi all,

When I moved to Switzerland I rented out my home back in the UK and still continue to do so. It's a small 2 up 2 down cottage style place which I have to constantly maintain due to it's age (built in 1880) and I've been spending a fair amount on it these past few years just to keep it livable for the tenant.

A friend told me recently that I should be able to claim back some of the expense through my Swiss tax return as it is viewed as 'maintaining an asset'. Has anybody here done this before? Or could you advise if you think it would be possible?

As always, many thanks in advance for any advice.

I put expenses in mine. One puts in rent received and then expenses. Gives net Rent . If you pay a tax on the land ( not the house ) also put that in. In the end you have your net earnings from the property.

omtatsat 13.03.2020 17:16

Re: Can you claim expenditure on a house abroad?
 
Quote:

Originally Posted by Homer (Post 3158081)
Where are you declaring the income from the rental?
I put down such items on my UK Tax return.

It goes under

"einkünfte aus liegenschaften"( property income )

All property,value of the property,income etc etc has to be put on the CH return

Boo Radley 13.03.2020 19:29

Re: Can you claim expenditure on a house abroad?
 
Quote:

Originally Posted by Homer (Post 3158081)
Where are you declaring the income from the rental?
I put down such items on my UK Tax return.

I declare it and pay tax in the UK, but the rent is pretty low so I pay almost no tax, hence I get nothing back for the maintenance costs. I also state my rent income and mortgage payments on the Swiss tax forms.

NickGB 14.03.2020 09:12

Re: Can you claim expenditure on a house abroad?
 
Quote:

Originally Posted by Boo Radley (Post 3158202)
I declare it and pay tax in the UK, but the rent is pretty low so I pay almost no tax, hence I get nothing back for the maintenance costs. I also state my rent income and mortgage payments on the Swiss tax forms.

Then all you need to do is include expenses on your Swiss tax return

fatmanfilms 14.03.2020 09:19

Re: Can you claim expenditure on a house abroad?
 
Quote:

Originally Posted by Boo Radley (Post 3158202)
I declare it and pay tax in the UK, but the rent is pretty low so I pay almost no tax, hence I get nothing back for the maintenance costs. I also state my rent income and mortgage payments on the Swiss tax forms.

U.K. has a large personal allowance, if you pay any tax in the U.K. the rent is not low

omtatsat 14.03.2020 09:54

Re: Can you claim expenditure on a house abroad?
 
Quote:

Originally Posted by fatmanfilms (Post 3158358)
U.K. has a large personal allowance, if you pay any tax in the U.K. the rent is not low

tax in Australia is 33% for non residents:msnmad: And land tax is around 12%!! Nothing left after the bastards hit you with this. I hate the Australian Govt!!

Guest 14.03.2020 10:29

Re: Can you claim expenditure on a house abroad?
 
Quote:

Originally Posted by Boo Radley (Post 3158202)
I declare it and pay tax in the UK, but the rent is pretty low so I pay almost no tax, hence I get nothing back for the maintenance costs. I also state my rent income and mortgage payments on the Swiss tax forms.

Do you include the value of the property as part of your 'fortune' as per the law.

omtatsat 14.03.2020 10:32

Re: Can you claim expenditure on a house abroad?
 
Quote:

Do you include the value of the property as part of your 'fortune' as per the law.
If he is paying a morgage then does it not change the situation of declaring the value in the CH tax?

Guest 14.03.2020 11:13

Re: Can you claim expenditure on a house abroad?
 
ah- yes, true. Depends if mortage covers full value, I suppose.

Boo Radley 14.03.2020 15:00

Re: Can you claim expenditure on a house abroad?
 
Quote:

Do you include the value of the property as part of your 'fortune' as per the law.
Yes, I include the value of the property.

dannyt986 14.03.2020 16:12

Re: Can you claim expenditure on a house abroad?
 
Quote:

ah- yes, true. Depends if mortage covers full value, I suppose.
The Swiss dont tax either foreign property income or assets, but you do have to declare them.

However, your % tax rate is based on your global income including the UK property, but just applied to the Swiss income.

In terms of wealth tax iirc your debts including UK mortgage are allocated prorata to your total assets, not directly against the UK property.

Bottom line declare it all and let them sort out the math...

omtatsat 14.03.2020 16:19

Re: Can you claim expenditure on a house abroad?
 
Quote:

Originally Posted by dannyt986 (Post 3158463)
The Swiss dont tax either foreign property income or assets, but you do have to declare them.

However, your % tax rate is based on your global income including the UK property, but just applied to the Swiss income.

In terms of wealth tax iirc your debts including UK mortgage are allocated prorata to your total assets, not directly against the UK property.

Bottom line declare it all and let them sort out the math...

Yes and it the end the amount of tax with your UK property etc can be alot more as without. So its a tax whether they call it that or not!

dannyt986 14.03.2020 17:05

Re: Can you claim expenditure on a house abroad?
 
Quote:

Originally Posted by omtatsat (Post 3158465)
Yes and it the end the amount of tax with your UK property etc can be alot more as without. So its a tax whether they call it that or not!

Tax and death right...

... by the same token if property is your only UK asset, jointly owned, you can make over 25kgpb net property income before you use up your UK allowances.

omtatsat 14.03.2020 17:17

Re: Can you claim expenditure on a house abroad?
 
Quote:

Originally Posted by dannyt986 (Post 3158481)
Tax and death right...

... by the same token if property is your only UK asset, jointly owned, you can make over 25kgpb net property income before you use up your UK allowances.

so whats the income tax rate in UK for UK non residents? THat is the tax rate for people who are considered in UK as non residents for tax purposes.

Landers 14.03.2020 18:04

Re: Can you claim expenditure on a house abroad?
 
Quote:

Originally Posted by omtatsat (Post 3158486)
so whats the income tax rate in UK for UK non residents? THat is the tax rate for people who are considered in UK as non residents for tax purposes.


Non-residents can choose to be taxed as a resident (exluding foreign income) or as a non-resident. Differences are mainly in personal allowances and dividend taxation. For most people who come to Switzerland to work, it's beneficial to be taxed as a resident.

omtatsat 14.03.2020 18:06

Re: Can you claim expenditure on a house abroad?
 
Quote:

Originally Posted by Landers (Post 3158505)
Non-residents can choose to be taxed as a resident (exluding foreign income) or as a non-resident. Differences are mainly in personal allowances and dividend taxation. For most people who come to Switzerland to work, it's beneficial to be taxed as a resident.

So UK does not have a double tax agreement with CH? Australia does not tax on foreign income as a non resident

Landers 14.03.2020 19:10

Re: Can you claim expenditure on a house abroad?
 
Quote:

Originally Posted by omtatsat (Post 3158507)
So UK does not have a double tax agreement with CH? Australia does not tax on foreign income as a non resident


Nor does the UK.


All times are GMT +2. The time now is 01:29.

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0