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Old 13.10.2020, 17:29
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Declaring Uk home for tax benefits

I m quite new here so I hope someone can at least set out their circumstances to help me decide what to do

I have a property in the Uk and it is empty. Cost was 1.2 million sterling and mortgage is 750k left. The interest to service the mortgage is 1k a month

I am confused about whether it is a net benefit or negative to my tax return which I plan to do.

On the one hand I heard maintenance insurance and utilities can be deducted and those can amount to 10k a year easily. Fitting a new kitchen etc could easily cost 50k

On the other hand I am taxed as renting this out from myself

Does anyone have any figures they can share about whether having a 1.2 house in London would result in income and therefore tax increasing or decreasing. Wealth tax is peanuts so thatís not relevant to this discussion
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Old 13.10.2020, 17:33
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Re: Declaring Uk home for tax benefits

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I m quite new here so I hope someone can at least set out their circumstances to help me decide what to do

I have a property in the Uk and it is empty. Cost was 1.2 million sterling and mortgage is 750k left. The interest to service the mortgage is 1k a month

I am confused about whether it is a net benefit or negative to my tax return which I plan to do.

On the one hand I heard maintenance insurance and utilities can be deducted and those can amount to 10k a year easily. Fitting a new kitchen etc could easily cost 50k

On the other hand I am taxed as renting this out from myself

Does anyone have any figures they can share about whether having a 1.2 house in London would result in income and therefore tax increasing or decreasing. Wealth tax is peanuts so thatís not relevant to this discussion
Unlimited Mortgage interest is tax deductible in CH, I am surprised you are being taxed for personal use of a foreign property, you must have put it in the wrong Canton.
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Old 13.10.2020, 17:36
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Re: Declaring Uk home for tax benefits

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Unlimited Mortgage interest is tax deductible in CH, I am surprised you are being taxed for personal use of a foreign property, you must have put it in the wrong Canton.
My wife owns a leasehold flat in London, and we are expecting a very large service charge next year - around £50,000 (substantial structural works).

Would that be tax deductible? (Are service charges in general tax deductible?).

FWIW she rents it out for around £25,000 a year. I also own a flat in London that I rent out for about £15,000 a year.
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Old 13.10.2020, 17:37
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Re: Declaring Uk home for tax benefits

Thanks Farman. Was hoping you would reply as you seem to know your stuff

I know the mortgage interest (not the repayment) is deductible. But donít you also get charged a rent in benefit and therefore if owning a property which is heavily mortgaged does this normally reduce your tax liability or increase it
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Old 13.10.2020, 17:55
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Re: Declaring Uk home for tax benefits

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Thanks Farman. Was hoping you would reply as you seem to know your stuff

I know the mortgage interest (not the repayment) is deductible. But don’t you also get charged a rent in benefit and therefore if owning a property which is heavily mortgaged does this normally reduce your tax liability or increase it
For properties in CH yes, foreign properties no.
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My wife owns a leasehold flat in London, and we are expecting a very large service charge next year - around £50,000 (substantial structural works).

Would that be tax deductible? (Are service charges in general tax deductible?).

FWIW she rents it out for around £25,000 a year. I also own a flat in London that I rent out for about £15,000 a year.
I think structural works would be deducted from eventual CGT.
Repainting Stucco etc would be a normal repair so deductible against rental income for tax purposes even in the UK where interest deduction is limited. All costs such as agents fees, insurance etc should also be deductible against rental income
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Old 13.10.2020, 18:03
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Re: Declaring Uk home for tax benefits

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For properties in CH yes, foreign properties no.


I think structural works would be deducted from eventual CGT.
Repainting Stucco etc would be a normal repair so deductible against rental income for tax purposes even in the UK where interest deduction is limited. All costs such as agents fees, insurance etc should also be deductible against rental income
For properties in CH yes, foreign properties no - Are you sure about that - This is highly relevant for me - Can I make an appointment to go tp my canton tax office or do they not really offer this?

Are you saying that if the UK house is empty all costs including interest can be deducted from your income and you pay no "rent" on this amount?

Are there any other threads where this has been dicussed?
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Old 13.10.2020, 18:05
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Re: Declaring Uk home for tax benefits

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For properties in CH yes, foreign properties no - Are you sure about that - This is highly relevant for me - Can I make an appointment to go tp my canton tax office or do they not really offer this?

Are you saying that if the UK house is empty all costs including interest can be deducted from your income and you pay no "rent" on this amount?

Are there any other threads where this has been dicussed?
Talk to the tax office, they don't bite.

If you don't rent it out, you can still deduct any interest you pay against Swiss tax assuming you are allowed to do a tax return.
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