Questions about buying a second home in the UK (CGT, etc)

Accomodation, House and Garden
1
If, as a property owner in Switzerland, I buy a second home as a holiday home in the UK, and I then sell it, I would be subject to pay capital gains tax assuming I made a gain after deducting stamp duty paid on the purchase, selling expenses and I guess a few other possible deductions.

1. I just wondered, as a non-resident, does this CGT ever go away? I heard about a 5 year rule, but my googling doesn't clear it up whether that is relevant in this case or not.

2. Assuming I did have to pay, there are two different rates depending on income. Is the amount of tax I pay dependent on only my UK income or Swiss income?

Does anyone know? disclaimer: I don't own a second UK property yet and am just trying to get my head around the potential implications.

2
First check out how much stamp duty you have to pay as a foreign owner!

3
Thanks NotAllThere, yes, I am already aware of the initial stamp duty.... very high. I would complain that as a Brit and not owning a property in the UK, it's very punitive, but what can you do.

What I'm not clear on is the selling implications as in my original post.

4

Yes you would be liable for UK Capital Gains tax.

https://www.gov.uk/capital-gains-tax/what-you-pay-it-on

If you’re abroad - You have to pay tax on gains you make on property and land in the UK even if you’re non-resident for tax purposes. You do not pay Capital Gains Tax on other UK assets, for example shares in UK companies, unless you return to the UK within 5 years of leaving.

More details here https://www.gov.uk/guidance/capital-…ntial-property

5
As a rule - for property in the UK you are taxed as a Brit living in the UK, no matter where you are in the world. You could get around this with a trust, not anymore - they've tightened around that. So as long as you own a property in the UK in any shape or form you can't get around not paying CGT.

Now... If you want to get REALLY clever. You create a company that buys the property and then you sell the company to the future purchaser and the tax liability passes on to them. However, unless you intend on building an empire, probably not practical for you.

Also I don't see how it's unfair that you have to pay the higher rate stamp duty, you own a house here in Switzerland, you don't live in the UK - why should you not pay for second property SLDT?! Sell your house in Switzerland and then move to the UK and your problem is solved........

6
Thanks Disjoint. Unfortunately not true for stamp duty, another issue.