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Old 27.02.2011, 11:22
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bringing pension cash back to uk ,,

i have worked in switzerland for 5 years and at the end of the contract i have vested pension benefits being paid to me in cash which i wish to bring back to the uk to buy my main residence in uk.Im wondering if there are any uk tax implications on bringing this money back to uk... withholding tax has been taken in zurich and i have the forms to get this back.Any help would be appreciated
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Old 27.02.2011, 11:32
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Re: bringing pension cash back to uk ,,

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i have worked in switzerland for 5 years and at the end of the contract i have vested pension benefits being paid to me in cash which i wish to bring back to the uk to buy my main residence in uk.Im wondering if there are any uk tax implications on bringing this money back to uk... withholding tax has been taken in zurich and i have the forms to get this back.Any help would be appreciated
No, there aren't any tax implications.
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Old 27.02.2011, 11:51
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Re: bringing pension cash back to uk ,,

there is only one thing , you bank with question the money laundering thing , your pension here will be no problem to move , as long as you will be living in the home you will be paying off , im about to do the same , but as my home is in my wifes name in the uk , i now have to change the land registry deads ( basicaly remortgage ) so mines not such an easy move .

my friend did it last year , with AXA and the only problem was his bank in the uk , other than that it got sorted , but he did pay a tax here in switzerland and a relocation fee 400chf admin .

just call your pension , and they will send you the forms
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Old 27.02.2011, 12:33
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Re: bringing pension cash back to uk ,,

i have already bought the money back and have the form for the witholding tax...which i want to claim back,, to do this i fill the form out and have the tax authorities in uk know about the pension cash i have bought back,,,, in order to reclaim the witholding tax... that was my concern ... will they be after me for any taxes on the large amount used to by my property here in the uk
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Old 27.02.2011, 12:39
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Re: bringing pension cash back to uk ,,

Count yourself VERY lucky that you are bringing CHF pension to UK - and not the other way round, like some of us!
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Old 27.02.2011, 12:59
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Re: bringing pension cash back to uk ,,

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i have already bought the money back and have the form for the witholding tax...which i want to claim back,, to do this i fill the form out and have the tax authorities in uk know about the pension cash i have bought back,,,, in order to reclaim the witholding tax... that was my concern ... will they be after me for any taxes on the large amount used to by my property here in the uk
What sort of withholding tax was applied to the vested benefits and at what rate? Was it treated as income in Switzerland? On what basis can you reclaim it?
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Old 27.02.2011, 13:04
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Re: bringing pension cash back to uk ,,

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What sort of withholding tax was applied to the vested benefits and at what rate? Was it treated as income in Switzerland? On what basis can you reclaim it?
witholding tax i can def claim back i have a form to refund withholding tax on settlements in cash by pension funds with registered office in switzerland... i was charged 8 percent withholding tax

i know i can get this back im more bothered if i try will i get stung for income tax in the uk on the cash i received from the pension fund when it vested
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Old 27.02.2011, 18:38
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Re: bringing pension cash back to uk ,,

Hello,
I have a quick question which seems to be in line with this thread.

I have my Swiss pension in a 2nd pillar vested benefit with my major Swiss bank, it's in cash following me leaving my job and coming back to the uk.

I'm buying a property in some months in the uk, I was told I cannot use this cash in the 2nd pillar to buy a property in uk. Only to buy one in Switzerland.

Anyone know anything here? It's around 30k chfs sitting there earning little as it's in cash.

Do let me know anyone if I can use this money to buy outside of ch?

Cheers....
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Old 28.02.2011, 05:33
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Re: bringing pension cash back to uk ,,

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Hello,
I have a quick question which seems to be in line with this thread.

I have my Swiss pension in a 2nd pillar vested benefit with my major Swiss bank, it's in cash following me leaving my job and coming back to the uk.

I'm buying a property in some months in the uk, I was told I cannot use this cash in the 2nd pillar to buy a property in uk. Only to buy one in Switzerland.

Anyone know anything here? It's around 30k chfs sitting there earning little as it's in cash.

Do let me know anyone if I can use this money to buy outside of ch?

Cheers....
As far as I know, the answer is Yes! - When you leave Switzerland- but not before you leave. When you take it out you must pay Swiss tax.
But I am not an expert. You have ask the Steueramt. ( tax office).
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Old 28.02.2011, 05:42
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Re: bringing pension cash back to uk ,,

Now it's my turn to ask.

Is the amount invested from he pensionskasse deducted from the total amount gained from the sale of the house, before paying tax?


If a person takes money out of the pensionskasse to use as a down payment on a mortgage, they pay tax. The money is then invested in the house.

When they come to sell the house, do they then pay tax on the whole amount i.e. even the money that they invested in the house from the pensionskasse? If so this would in effect constitute double taxation- as they were taxed once when they take the money out to invest in the house and again when they sell the house.

OR

Is the amount invested from the pensionskasse deducted from the total amount gained from the sale of the house, before paying tax on the sale of the house?
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Old 28.02.2011, 07:12
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Re: bringing pension cash back to uk ,,

Well, I don't actually know the answer, but I would expect you are taxed on the whole amount - after all, when you withdraw the cash from the pension you are paying a tax 'similar' to income tax (which you have actually paid on all other monies you spent on the house). When you sell your house you are taxed on the capital gain you made. If your house cost 500,000 and you sell for 600,000 there is a 100,000 gain regardless of how you paid for the 500,00.
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Old 28.02.2011, 08:06
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Re: bringing pension cash back to uk ,,

my issue is i have the funds back in uk that was no problem,, my issue is do i have to pay any uk taxes on this money on bringing it back to the uk ,,, we are talking here about vested pension not the bvg portion that has to remain,,
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Old 28.02.2011, 08:41
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Re: bringing pension cash back to uk ,,

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Now it's my turn to ask.

Is the amount invested from he pensionskasse deducted from the total amount gained from the sale of the house, before paying tax?


If a person takes money out of the pensionskasse to use as a down payment on a mortgage, they pay tax. The money is then invested in the house.

When they come to sell the house, do they then pay tax on the whole amount i.e. even the money that they invested in the house from the pensionskasse? If so this would in effect constitute double taxation- as they were taxed once when they take the money out to invest in the house and again when they sell the house.

OR

Is the amount invested from the pensionskasse deducted from the total amount gained from the sale of the house, before paying tax on the sale of the house?
We withdrew pension to pay for our house. The tax was < 1%. Somewhere I read that pension withdrawals to buy property had to be paid back if the property is sold. I think I may have a letter from my pensionskasse from Jan 2006 (when that rule came into effect) that says this (need to dig it out).
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Old 28.02.2011, 08:57
Ittigen
 
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Re: bringing pension cash back to uk ,,

Only after you have reached 55 years of age.

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Hello,
I have a quick question which seems to be in line with this thread.

I have my Swiss pension in a 2nd pillar vested benefit with my major Swiss bank, it's in cash following me leaving my job and coming back to the uk.

I'm buying a property in some months in the uk, I was told I cannot use this cash in the 2nd pillar to buy a property in uk. Only to buy one in Switzerland.

Anyone know anything here? It's around 30k chfs sitting there earning little as it's in cash.

Do let me know anyone if I can use this money to buy outside of ch?

Cheers....
Ask these people http://www.vermoegenszentrum.ch/Home-EN?lang=en-us

Last edited by Ittigen; 28.02.2011 at 09:09.
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Old 28.02.2011, 09:02
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Re: bringing pension cash back to uk ,,

Maybe I am wrong, but; many years ago I was told to only bring money into the UK which was earned abroad in the previous tax year. In your case this pension money will be charged as having been earned in the tax year April 2010 to April 2011 and added to your other earnings for this tax year. If you brought the money to UK after 5.4.2011 it would be free of 2011-2012 UK earned income tax.

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my issue is i have the funds back in uk that was no problem,, my issue is do i have to pay any uk taxes on this money on bringing it back to the uk ,,, we are talking here about vested pension not the bvg portion that has to remain,,
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Old 28.02.2011, 09:24
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Re: bringing pension cash back to uk ,,

i think my issue is down to extra statutory concession A 10 issued by the uk tax authorities ,,, if any one out there can explain how that works let me know thanks
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Old 01.03.2011, 10:45
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Re: bringing pension cash back to uk ,,

think my issue is down to extra statutory concession A 10 issued by the uk tax authorities ,,, if any one out there can explain how that works let me know thanks ..
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Old 02.03.2011, 10:50
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Re: bringing pension cash back to uk ,,

Hi! I thought I would add my question to this thread as well.

I left Switzerland for the UK and am now looking to withdraw my vested benefits pension.

I understand that I can take any excess over the statutory BVG amount in cash. However, would it be possible to take the BVG amount to buy property? Or is this portion untouchable?

The forms I have (AXA) do not provide the property option.

Any advice would be much appreciated.
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Old 02.03.2011, 11:06
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Re: bringing pension cash back to uk ,,

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Hi! I thought I would add my question to this thread as well.

I left Switzerland for the UK and am now looking to withdraw my vested benefits pension.

I understand that I can take any excess over the statutory BVG amount in cash. However, would it be possible to take the BVG amount to buy property? Or is this portion untouchable?

The forms I have (AXA) do not provide the property option.

Any advice would be much appreciated.
This is interesting. There was discussion of this some time ago as the Swiss pensionskasse rules did not specify where the property needed to be. And the English in particular were not keen on this. But whether this actually was concluded I do not know but I could find out. Maybe I should find out...
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