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Where Taxpayers and Advisers Meet

Calculating FTCR and cash basis

canopao
Posts:4
Joined:Mon Dec 09, 2019 3:32 pm
Calculating FTCR and cash basis

Postby canopao » Mon Dec 07, 2020 6:38 pm

Hi,
I have some properties in Switzerland which bring a rental income. I pay taxes in Switzerland on them, and then declare the income on my UK tax return. I use the cash basis when working out income and expenses - so I just look at my bank statements to see what money has come in and what has gone out in the April-April period. How do I work out FTCR though? Should I work out FTCR on a cash basis as well - i.e. the tax bills that I have paid in the April-April period? Because of the way the Swiss tax year works (January-December) and the fact that different taxes (Cantonal, Communal, Federal) are paid in instalments at different times, the tax I pay in Switzerland in a particular UK tax year may not actually correspond to the income I have had in that year. Or should I claim Swiss tax for FTCR on an "accruals" basis - trying to work out what tax I have been charged on the income I had in that year (even though the money may not have actually left my account during that financial year)?

Thank you for your advice!

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Calculating FTCR and cash basis

Postby bd6759 » Mon Dec 07, 2020 10:18 pm

The foreign tax assessments need to be apportioned, 3 months/9 months to coincide with the UK tax year.

canopao
Posts:4
Joined:Mon Dec 09, 2019 3:32 pm

Re: Calculating FTCR and cash basis

Postby canopao » Mon Dec 07, 2020 10:37 pm

The foreign tax assessments need to be apportioned, 3 months/9 months to coincide with the UK tax year.
That's fair enough - but I've only just received my Swiss tax assessment for 2019. I won't receive the one for 2020 for another year - so do I just estimate how much it's going to be in 2020 and claim an estimated 3 months of 2020?

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Calculating FTCR and cash basis

Postby bd6759 » Mon Dec 07, 2020 11:08 pm

Yes.


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