CGT and capital loss in the case of a sale with usufruct abroad

hi, I inherited bare-ownership of a flat in Geneva, Switzerland, while the widow has usufruct over the property for the rest of her life. I'm now selling the flat with the usufruct. This means that although the flat is worth 1.6M CHF, I will sell it at 1M CHF max (flat was 1.1M at time of death). I live in the UK, can I use the fact that I am technically selling at a loss (1M instead of 1.6M, or even 1.1M) to offset any capital gains tax in the UK? Is that considered a capital loss? How should I declare this and how will it be taxed. Best regards, John

Hi,

If the disposal is at arm's length (i.e. market value not applicable), normal CGT rules will apply on the consideration received and a capital loss could be claimed if applicable.  
It basically would be the difference between the Sterling value at the time of acquisition and the Sterling value at the time of disposal.
A capital loss would then be available to set against any future capital gains.  
This guidance should be followed:

Tax when you sell property

Capital Gains Tax: what you pay it on, rates and allowances

CG14530 - Consideration for disposal: market value rule

CG78300P - Capital Gains Manual: Chattels and other assets: Foreign currency

Thank you.