Postby AGoodman » Mon Mar 13, 2017 2:29 pm
I suspect that if the heirs collectively (or just you) sold the building at a gain over "probate" value then yes, there could be CGT to pay.
The three ways out of paying UK tax would be:
(I) there is no gain - ie you sold at the same or a lesser value than the market value at the death;
(ii) any tax is franked by a credit for Swiss tax payable; or
(iii) you elect to be taxed on the remittance basis - this would come with a charge if you have been resident in the UK for 7 years or more and you would still have to pay the tax if you ever remitted to the proceeds to the UK.
In practice, if you sold immediately then the gain over probate value might be tiny anyway.
And, yes, as a UK resident you would be liable to UK income tax on Swiss rental income subject to points (ii) and (iii) above.
The remittance basis charge is £30k after 7 years of residence and £60k after 12 years. From April, you will not be able to elect for the remittance basis after 15 years of UK residence.
AG