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Old 26.02.2013, 10:32
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UK - Swiss Tax Agreement - AHV

Hello,

Perhaps one of you has the answer to this question:

Under the UK - Swiss Tax Agreement, in the situation where a person living in the UK, receiving AHV in a Swiss bank account and choosing the option to keep "final withholding tax for the future" anonymous, which tax rate would apply? Is the AHV subject to this at all?

Thanks in advance for any info on this.
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Old 26.02.2013, 10:59
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Re: UK - Swiss Tax Agreement - AHV

I am not sure of the Swiss to UK scenario but if you draw a UK state pension and live in Switzerland it will be payed via the Swiss AHV system on top of what you receive from Switzerland. I suspect it may work the same way in reverse.
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Old 26.02.2013, 11:22
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Re: UK - Swiss Tax Agreement - AHV

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I am not sure of the Swiss to UK scenario but if you draw a UK state pension and live in Switzerland it will be payed via the Swiss AHV system on top of what you receive from Switzerland. I suspect it may work the same way in reverse.
Are you sure? My father receives his Swiss, German and French pensions in the UK directly from the respective countries.

OP needs to clarify if he means a pension.
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Old 26.02.2013, 13:56
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Re: UK - Swiss Tax Agreement - AHV

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I am not sure of the Swiss to UK scenario but if you draw a UK state pension and live in Switzerland it will be payed via the Swiss AHV system on top of what you receive from Switzerland. I suspect it may work the same way in reverse.
I have a UK pension paid directly to my Swiss bank account in CHF - not through the Swiss AHV system...
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Old 26.02.2013, 14:50
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Re: UK - Swiss Tax Agreement - AHV

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I am not sure of the Swiss to UK scenario but if you draw a UK state pension and live in Switzerland it will be payed via the Swiss AHV system on top of what you receive from Switzerland. I suspect it may work the same way in reverse.
No you receive the pension from each jurisdiction, but the jurisdiction where you are permanently resident is responsible for handling your application. So under the new system you would go to your local pension office, inform then of all the EU/CH countries where you have made contributions and they then take it from there. Once the local office gets all your details back from each country there is complex calculation carried to ensure that you will get certain minimum figure and that all contributions are taken into account to ensure that you get at least that minimum. After that you will start to receive your pension from the various countries involved.
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Old 26.02.2013, 17:26
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Re: UK - Swiss Tax Agreement - AHV

The last correspondence I had with HMRC states the following:
If you are living in any European Economic Area country you should claim as follows.
If you have worked in the country you are now living in you should make your claim for your State Pension, through the pension institution in that country. You should contact that institution for details of what you need to do, if you have not already done so.
If you have not worked in the country you are living in then you should claim your UK State Pension direct from the Pension Service/International Pensions Centre, unless you have worked in another EEA country since leaving the UK, in which case you should make your claim through the last institution you were insured with.
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Old 26.02.2013, 18:24
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Re: UK - Swiss Tax Agreement - AHV

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The last correspondence I had with HMRC states the following:
If you are living in any European Economic Area country you should claim as follows.
If you have worked in the country you are now living in you should make your claim for your State Pension, through the pension institution in that country. You should contact that institution for details of what you need to do, if you have not already done so.
If you have not worked in the country you are living in then you should claim your UK State Pension direct from the Pension Service/International Pensions Centre, unless you have worked in another EEA country since leaving the UK, in which case you should make your claim through the last institution you were insured with.
So you are agreeing with Jim2007 I think. These are instructions who to claim through, not necessarily the same as who then pays. My father claimed through the UK Pensions Service and gets multiple pensions paid. He did have to provide some documents to the respective countries, and regularly has to prove to the frogs he is still in existence and alive.
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Old 26.02.2013, 21:11
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Re: UK - Swiss Tax Agreement - AHV

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So you are agreeing with Jim2007 I think. These are instructions who to claim through, not necessarily the same as who then pays. My father claimed through the UK Pensions Service and gets multiple pensions paid. He did have to provide some documents to the respective countries, and regularly has to prove to the frogs he is still in existence and alive.
I understand that these procedures are fairly new and were introduced for a few reasons:

- To make it easier for the person claiming the pension

- To catch situations where you don't qualify for a minimum pension in total because you have not made enough contributions over your working life in any one country. In this case you have to get the minimum pension in the country where you are resident and the cost is distributed some way over the countries where you worked (I don't have anything else on this one)

- To ensure that you get all the non monitory benefits in the country where you are resident - e.g discount cards, free transport, telephones, electricity and any other stuff that is on offer.
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Old 07.03.2015, 18:19
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Re: UK - Swiss Tax Agreement - AHV

Old thread I know but there appears to be so much rubbish posted in this thread that I thought I'd post my personal experience.

I completed and sent my application (form IPC 1394 Switzerland) direct to the UK International Pension Centre in the UK. I have received confirmation of my entitlement and I quote "Your UK state pension will be paid at the end of every four weeks to your bank".
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Old 07.03.2015, 19:45
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Re: UK - Swiss Tax Agreement - AHV

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Old thread I know but there appears to be so much rubbish posted in this thread that I thought I'd post my personal experience.

I completed and sent my application (form IPC 1394 Switzerland) direct to the UK International Pension Centre in the UK. I have received confirmation of my entitlement and I quote "Your UK state pension will be paid at the end of every four weeks to your bank".
"Your bank" being where? If you mean your Swiss bank, this is correct. Though obviously it is different every time due to exchange rates and you will notice that "four weeks" is not a month and thus the payments slip a few days through the year...
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Old 08.03.2015, 21:52
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Re: UK - Swiss Tax Agreement - AHV

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"Your bank" being where? If you mean your Swiss bank, this is correct. Though obviously it is different every time due to exchange rates and you will notice that "four weeks" is not a month and thus the payments slip a few days through the year...
Don't quite see what you're getting at. I just wanted to clarify that you don't have to apply for a UK pension through the AHV.

BTW you've got a choice of whether you want it paid into a bank in Switzerland or the UK.
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Old 09.03.2015, 01:05
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Re: UK - Swiss Tax Agreement - AHV

Rigormortis is totally correct, we had the choice of where we wanted the pension paid, UK or Switzerland, or even converted into CHF if required.
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Old 09.03.2015, 01:22
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Re: UK - Swiss Tax Agreement - AHV

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Rigormortis is totally correct, we had the choice of where we wanted the pension paid, UK or Switzerland, or even converted into CHF if required.
True, it is better to get it converted into CHF as the UK pension service have very good exchange rates (my experience so far anyway).
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