Hi

I've picked up a lot of information here but still have some questions about Wealth Tax and is application as we prepare to take up residence. I'd be very grateful for any help anyone can give, on the following assets and their treatment for taxation.

Pension Assets (UK):-

Are AVCs, FSAVCs and SIPPSs and Money-Purchase assets par of your declarable 'assets' for the purpose of calculating wealth tax?

I assume PEPS and ISAs are just part of my assets, am I correct?


How do the authorities expect you to value properties outside Switzerland, is a formal annual valuation required?

So Many questions !

Thanks

Aynthing that is related to pension planning falls outside of personal wealth as this is not a liquid asset in any way. Property valuations are normally taxed at the location of the property as they are immovable. Income on immovable assets can be treated differently though. Unless you are anticipating selling your foreign property and "importing" the money it is far easy for all concerned to pretend they don't exist.

Richard

Thanks very much for your response, info re : pension planning is very, very much appreciated.

I'm (possibly ) normal wrt my tax affairs in that I'd rather declare and be damned rather than witholding info... my problem !

Still unsure about the 'strict' treatment of UK PEPS and ISAs though ... anyone understand and doing it ...above board?

tax on wealth is very low. Making wealth suddenly appear from nowhere is classed as income and taxed more highly.

Just list it on the tax return. Should be a doddle....

Very fair comment ... but if assets lie in an acceptable tax-free wrapper then why pay tax on them? One would also have to declare the income on the PEPs and ISAs, not just their capital value.

wealth is wealth. Tax is low. How long you got on these, anyway? Can't be long now IIRC?

Put wealth in Panamean foundation.

The only thing I recognize here (just barely) is ISA. I thought PEP was a politically-exposed person. EME, couldn't the person making his living by selling you these AVCs, FSAVCs and SIPPSs and so forth give you better tax advice than a few EFers?

No end to ISAs and PEPS afaik?

Of corse tax is low ... but then again your bill depends upon your income. Fair?

PEP is a UK - "Personal Equity Plan' .

UK - brokers know nothing of the Swiss tax system ...

you want 10 minutes of an accountant's time then, not some random helpfulness of an internerder

I assume your previous 1206 posts had more value

Do you hunt in packs on newbies, or just individual nonsense?

I live with/was one I thought the 'knowledge' here might be more venerable than the non-commital nature of my profession

Pavlovian reaction induced by overexposure to work. I'm off to a few Dilbert pages.

Having spoken to Dilbert, he seems to agree that PEP's and ISA's are part of overall wealth; however he wondered - will you still be entitled to ISA if (insert assumption disclamer here) you will not be a UK tax resident?

Dim memory cells seem to indicate that eligible for ISA's are/were only UK tax residents or special overseas serving types?

Aha. Further stimulation of said cells with full octane caffeine seem to indicate that if you cease being UK tax resident you can keep existing ISA's but not contribute anymore. Which sort of defeats the purpose of the ISA if you declare it as wealth in Switzerland.

Anyhoo, since the full scope of your planning is unknown to me, i'll say this much - there is no tax on capital gain in Switzerland. I am quite sure about non-taxation of equity dividends received from EU based companies - as far as EU residents are concerned, fixed income and cash revenue is currently taxed at source along a scale set to increase to about a third in the near future (but can be circumvented by setting up a foundation or company (of which the Panameans are the cheapest - ah, i knew that seminar would come to good use someday)). Said company also allows you to circumvent wealth tax to some extent.

You could then in theory replicate your ISA scheme here, with the added benefit that there are no limits in yearly contributions.

Back to comics now.