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Old 04.11.2015, 13:05
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Notifying Swiss Tax of Capital Gains when leaving Switzerland

Hello,

I understand there are no capital gains taxes (stocks) in Switzerland. However do I need to let the Swiss tax authorities know what my capital gains on stocks were when I file my last year of taxes of living in Switzerland? I lived in Switzerland for 2.5 years.

I have recently left Switzerland, and I want to ensure that I do not pay any taxes on my capital gains (up to my date of departing Switzerland) in my new country (UK), or in my home country when I return home (Canada). For instance, when I left Canada I had to file a tax form that essentially 'realized' all my capital gains on paper on my date of departure. I paid those and was considered up to date on my taxes to be considered a non-resident. I essentially am wondering if I need to file a proper similar form to close off all my loose ends before leaving Switzerland, so I am not in fear of having to pay them in another country later.

Thank you!
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Old 04.11.2015, 13:54
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Re: Notifying Swiss Tax of Capital Gains when leaving Switzerland

UK cgt is based on cost on acquisition date nothing else.
Unless you have been non tax resident in the UK for 5 tax years you are liable for those gains on your return.
In the UK you don't realise gains on departure.
Switzerland does not tax capital gains on stocks & shares. The only way to realise gains for UK tax is to sell the shares & nor repurchase the same companies for 30 days .
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Old 04.11.2015, 15:01
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Re: Notifying Swiss Tax of Capital Gains when leaving Switzerland

Thanks for the response.

I am new to the UK, I have just arrived and have a Tier 5 visa only valid for 2 years, I am a Canadian citizen. In Canada I am a now non resident and have paid taxes on capital gains up to the date I left. I would of course think I am only required to pay capital gains taxes to the UK starting from the date of my arrival? My main concern is moving back to Canada, making sure I can prove I followed the proper procedures on tax while I was a non resident.
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Old 04.11.2015, 15:46
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Re: Notifying Swiss Tax of Capital Gains when leaving Switzerland

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Thanks for the response.

I am new to the UK, I have just arrived and have a Tier 5 visa only valid for 2 years, I am a Canadian citizen. In Canada I am a now non resident and have paid taxes on capital gains up to the date I left. I would of course think I am only required to pay capital gains taxes to the UK starting from the date of my arrival? My main concern is moving back to Canada, making sure I can prove I followed the proper procedures on tax while I was a non resident.
You should have sold all profitable positions whilst in CH.

UK CGT does not care about your Canadian tax status.

Unless your a non Dom, any sales made will be subject to UK CGT. Acquisition cost is used not value when you became UK resident.

Quite why you did not pay for professional tax advise beats me if you have substantial assets. Canadian or Swiss way of doing things dont apply
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Old 04.11.2015, 16:59
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Re: Notifying Swiss Tax of Capital Gains when leaving Switzerland

Thanks again for your reply.

Would I be right to assume then if I don't sell the positions while in the UK, I will not have to pay any capital gains when I exit the UK?

Secondly, if carried over losses to the UK, if I sell my negative positions now that I am in the UK, can I use this as a taxable benefit? It seems like this would be the case if my profits are indeed taxable?
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Old 04.11.2015, 17:07
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Re: Notifying Swiss Tax of Capital Gains when leaving Switzerland

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Thanks again for your reply.

Would I be right to assume then if I don't sell the positions while in the UK, I will not have to pay any capital gains when I exit the UK?

Secondly, if carried over losses to the UK, if I sell my negative positions now that I am in the UK, can I use this as a taxable benefit? It seems like this would be the case if my profits are indeed taxable?
If you don't make any sales then no tax to pay.

Losses can only be set against gains not income

CGT has an 11k exemption & excess gains taxed at 18 or 28% depending if your a basic or higher rate tax payer. (Gains added to income to determine rate of tax
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Old 04.11.2015, 17:26
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Re: Notifying Swiss Tax of Capital Gains when leaving Switzerland

Ok thanks very good to know. Fortunately my positions are not overly sizeable.


I guess it would be in my best interest to hold all my profitable positions until I return to Canada (well at least over 11K). Canada deems you to have acquired your assets on the day you become a resident. Which makes sense as they deem you to have sold and realized all assets on the day you become a non resident.

"When a taxpayer becomes a resident of Canada, he is deemed to have acquired all capital assets, unless specifically excluded, at the fair market value on the date he commences residency. As such, any unrealized but accrued pre-immigration gains would not be subject to Canadian tax when the asset is sold. Similarly, when a taxpayer ceases Canadian residence, he is deemed to have sold all of his capital assets, unless specifically excluded, at fair market value and the resulting taxable capital gain, if any, would be included in his last Canadian tax return. If the individual has not been resident in Canada for more than 60 months, any assets he owned at the time he commenced Canadian residency would be excluded from the departure rules."
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