CH Tax on a UK Ltd Company

Finance, Taxes, Banking, Insurance and Retirement
1
Hi all

I’m due to inherit some UK properties that are rented out & I’m potentially looking at putting them into a UK limited company wrapper. Would anyone know or be able to advise on whether I would be subject to Swiss tax on the company profits, whether I withdraw on the company profits or not?

Thanks alot for any help!

2
Where you resident ?

3
The short answer, assuming you're resident here.

You'll pay Swiss wealth tax on the value of your shares in the UK LTD.

The company will pay UK corporation tax on its profit.

You'll pay Swiss taxes on any salary or dividend dispersed from the UK LTD to you.

4
And the company will pay tax on any property sales, then all UK dividend payouts don't come with any tax credit, to be used against your Swiss liability, despite the fact that UK corporation tax has been paid prior to the distribution.

You don't pay Swiss tax on the company profits.

5
Comes down to also having to pay stamp duty on all those transactions I would imagine as you are moving them from held under your name to a company. Unless there is some inheritance law i am unaware of.

6
Thanks all for your valuable inputs.

Yes I am a Swiss resident & Yes the wealth on the properties it something I will have to declare.

I’m actually not looking to take anything out of the company i.e. salary or dividend but wanted to grow a pot for either purchasing additional properties or investing in some other form or just passing on to my kids at a later stage. As I’ve understood it, I wouldn’t then be liable to any Swiss tax on the profits (at present) but just the UK corporation tax.

Yes exactly I would look to transfer them from held to a company & i’m presuming there is a stamp duty to pay but will be double checking that with uk lawyers to see if there’s anyway around this.

7
My wife and I have two. We've split them one each and own as individuals so that we get the full UK allowance which means we don't pay any income tax at all in either country. (and barely any wealth as the taxable value is much lower than the real value and then you take off the mortgage).

8
Unless you can do a deed of variation leaving the properties to the limited company, there will be stamp duty payable & potentially CGT if the properties have increased above the probate value on the date of death.