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  #21  
Old 29.07.2011, 16:50
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Re: Paying off mortgage (monthly) in UK from salary in CHF

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If the net letting income is less than the Personal Allowance, then there might not be any UK tax on the income, so there is room for the income to go up without increasing the UK tax.
.
Be careful, only UK residents have a 'personal allowance' in the UK.
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Old 29.07.2011, 17:09
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Re: Paying off mortgage (monthly) in UK from salary in CHF

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Be careful, only UK residents have a 'personal allowance' in the UK.
Fatmanfilms - you seem to know all this stuff very well, but in a PDF called HMRC6, there's the following text. Does this mean that, as a British citizen, I still can use the personal allowance despite not being resident in the UK? I'm just curious, so don't spent ages researching if it's not an easy answer :)


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6.6 Allowances for non-UK residents
Even if you are not resident in the UK, you may be able to claim personal tax
allowances if you are any one of the following:
• a Commonwealth citizen *
• a citizen of a state within the European Economic Area (EEA) (this includes a
British Citizen), that is a citizen of a Member State of the European Union,
Iceland, Liechtenstein or Norway
• a current or a former employee of the British Crown (including a
civil servant, member of the armed forces, etc.)
• a UK missionary society employee
• a civil servant in a territory under the protection of the British Crown
• a resident of the Isle of Man or the Channel Islands
• a former resident of the UK who lives abroad for the sake of your own health
or the health of a member of your family who lives with you
• a widow, widower or the surviving civil partner of an employee of the
British Crown
• a National and/or resident of a country with which the UK has a Double
Taxation Agreement which allows such a claim.
* This category applies only until 5 April 2010. From 6 April 2010, you do not
qualify for personal allowances solely by virtue of being a Commonwealth
citizen. But, you may still qualify for these allowances under other provisions
or through a relevant double taxation treaty.
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  #23  
Old 29.07.2011, 17:19
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Re: Paying off mortgage (monthly) in UK from salary in CHF

I'd agree with Adrian - I was told before that all citizens of the UK / EU / EEA has a personal allowance.

That is also what I understand from this page:

http://www.hmrc.gov.uk/cnr/allow_nonres.htm
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Old 29.07.2011, 17:26
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Re: Paying off mortgage (monthly) in UK from salary in CHF

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Fatmanfilms - you seem to know all this stuff very well, but in a PDF called HMRC6, there's the following text. Does this mean that, as a British citizen, I still can use the personal allowance despite not being resident in the UK? I'm just curious, so don't spent ages researching if it's not an easy answer
This is not an area I researched in detail, because I sold up when I left the UK in 1994.
My accountant said I would not get a UK personal allowance after becoming non resident, it was a specific question I asked. He was a chartered accountant rather than an expert tax laywer, so he could have not really known.
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Old 29.07.2011, 17:28
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Re: Paying off mortgage (monthly) in UK from salary in CHF

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I'd agree with Adrian - I was told before that all citizens of the UK / EU / EEA has a personal allowance.

That is also what I understand from this page:

http://www.hmrc.gov.uk/cnr/allow_nonres.htm
It looks like it changed as part of EU tax harmanisation, thanks for the info, It looks like that I can claim a small tax refund!
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Old 29.07.2011, 17:34
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Re: Paying off mortgage (monthly) in UK from salary in CHF

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It looks like that I can claim a small tax refund!
What a wonderful way to enter a long weekend!
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Old 29.07.2011, 17:36
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Re: Paying off mortgage (monthly) in UK from salary in CHF

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You have made some huge oversimplifications in your conclusion.
As I said, I skimmed the article. Would you at least agree that the case is a little more complicated than someone who moves to Switzerland, leaves no one behind, earns their full-time living working in Switzerland, visits the UK only incidentally, and owns an apartment that they rent out year-round?

Most people who are genuinely at risk of having disputed tax residency are aware of it and seek specialist advice. Most of the people who ask naive tax questions (and I don't mean this in a condescending way -- I simply mean that they don't understand a lot about tax law) tend to have very straight-forward tax positions.

If someone said to me that they were an independent contractor, with a UK-based limited company, working in Switzerland but commuting home on the weekends, I would absolutely direct them towards a specialist (but then again, they'd have come here asking exactly those questions, as they'd realise their situation is not straightforward).

But for 95% of the posters on this forum, they have without a doubt moved their center of interest to Switzerland. They live here full time, work here full time, have their families here, pay their taxes here, and are beyond any shade of a doubt Swiss tax residents.

And as interesting as the debate is, it also has no relevance to making overseas payments, which aren't taxable in any case. Regardless of how many court decisions you pull up and post on the thread.
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  #28  
Old 29.07.2011, 17:46
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Re: Paying off mortgage (monthly) in UK from salary in CHF

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As I said, I skimmed the article. Would you at least agree that the case is a little more complicated than someone who moves to Switzerland, leaves no one behind, earns their full-time living working in Switzerland, visits the UK only incidentally, and owns an apartment that they rent out year-round?



But for 95% of the posters on this forum, they have without a doubt moved their center of interest to Switzerland. They live here full time, work here full time, have their families here, pay their taxes here, and are beyond any shade of a doubt Swiss tax residents.
.
To avoid risk, the apartment should really be sold, that was the advise I received in 1994, looks good today. The longer & greater the break from the UK the better.

100% of those people are without doubt Swiss Tax residents, however possibly 20% of those may be dual tax residents & not be aware of it.

Edit, the danger of retaining a property & returning to that property after say 3 years, would make it difficult to argue that you left 'permanantly', when the revenue can say it was just a temporary absence with an intent to return.

Last edited by fatmanfilms; 29.07.2011 at 20:07. Reason: adding an afterthought
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