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  #21  
Old 23.08.2012, 22:05
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Re: Cashing in Swiss pension and returning to the UK

Worst case would be a tax offset, depending on when the OP says she became re-resident in the UK for tax purposes.

As she paid the Swiss deferred tax owed and it was Swiss income, and doesn't originate in the UK, and was Swiss resident in the tax year, she might be OK. Especially if she's resident less than 90-183 days in the UK tax year.

Worst case is 28% Cap Gains tax on the diff, or 18% if qualifying for the lower rate after 10k deduction in UK less Swiss tax already paid, I would guess. Might depend on the bilateral agreement.
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  #22  
Old 24.08.2012, 00:04
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Worst case would be a tax offset, depending on when the OP says she became re-resident in the UK for tax purposes.

As she paid the Swiss deferred tax owed and it was Swiss income, and doesn't originate in the UK, and was Swiss resident in the tax year, she might be OK. Especially if she's resident less than 90-183 days in the UK tax year.

Worst case is 28% Cap Gains tax on the diff, or 18% if qualifying for the lower rate after 10k deduction in UK less Swiss tax already paid, I would guess. Might depend on the bilateral agreement.
CGT does not enter into it, it's income received by a uk resident to buy thrre main residence so upto 50% tax could be payable, a credit for the 6 %Swiss tax deducted will of course be given .

This is not straightforward. UK tax is self assessment any mistake could be expensive .
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  #23  
Old 24.08.2012, 00:12
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Re: Cashing in Swiss pension and returning to the UK

Zurich was my pension company. I spent 800 chf on a Swiss lawyer. As regards to UK tax I have no idea. I will wait for them to contact me I suppose but as I came back mid tax year I could well still come under the tax threshold anyway. Time will tell I suppose.
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  #24  
Old 24.08.2012, 01:01
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Re: Cashing in Swiss pension and returning to the UK

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Zurich was my pension company. I spent 800 chf on a Swiss lawyer. As regards to UK tax I have no idea. I will wait for them to contact me I suppose but as I came back mid tax year I could well still come under the tax threshold anyway. Time will tell I suppose.
Personal allowance is around 10k in the UK. You have to inform the revenue of any income, it's not their responsibility to ask.
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Old 24.08.2012, 01:04
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Re: Cashing in Swiss pension and returning to the UK

Well if it's 10k then I should be fine this year Next tax year I won't. Good job I am taking a well deserved sabatical :-) It pay not to work sometimes it seems
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  #26  
Old 24.08.2012, 08:41
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Re: Cashing in Swiss pension and returning to the UK

Could you only transfer half your pension contributions? Or the full amount?
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  #27  
Old 24.08.2012, 08:56
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Re: Cashing in Swiss pension and returning to the UK

I'm no tax expert, but I did a little reading. You should read up on ESCA10 (just google it and go to the hmrc website links) which is a tax concession in relation to lumpsum payouts from overseas pensions. You need to read quite carefully , but my current understanding is as follows.

Normally you would be (income) taxable if resident in UK on any payout from an overseas scheme. However, if your payout is from an overseas employment pension scheme, ESCA10 can provide tax relief if your period of service in accruing that pension was made overseas (ie not if you lived/worked in UK and contributed to an overseas pension). It defines rules for establishing how to apply it if your period of service was mixed (ie UK and overseas).

As I read it, and in the simplest case, where you moved to (ie became resident) in Switzerland and accrued a pension whilst working here, you would be entitled to full exemption from income tax on a lump sum payment made from that pension scheme even after you return to UK. In more complex cases you may be eligible for partial relief as defined in other referenced concessions.
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  #28  
Old 24.08.2012, 09:41
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Re: Cashing in Swiss pension and returning to the UK

In answer to an earlier question, I was able to choose how much of my pension I wanted to withdraw.
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  #29  
Old 24.08.2012, 11:45
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Re: Cashing in Swiss pension and returning to the UK

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I'm no tax expert, but I did a little reading. You should read up on ESCA10 (just google it and go to the hmrc website links) which is a tax concession in relation to lumpsum payouts from overseas pensions. You need to read quite carefully , but my current understanding is as follows.

Normally you would be (income) taxable if resident in UK on any payout from an overseas scheme. However, if your payout is from an overseas employment pension scheme, ESCA10 can provide tax relief if your period of service in accruing that pension was made overseas (ie not if you lived/worked in UK and contributed to an overseas pension). It defines rules for establishing how to apply it if your period of service was mixed (ie UK and overseas).

As I read it, and in the simplest case, where you moved to (ie became resident) in Switzerland and accrued a pension whilst working here, you would be entitled to full exemption from income tax on a lump sum payment made from that pension scheme even after you return to UK. In more complex cases you may be eligible for partial relief as defined in other referenced concessions.
Thanks for that, I assume its applicable predominately to 2nd Pillar. Will look at it this weekend for reference to 3rd Pillar as its optional deferred income for tax purposes.
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  #30  
Old 24.08.2012, 14:08
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Re: Cashing in Swiss pension and returning to the UK

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I'm no tax expert, but I did a little reading. You should read up on ESCA10 (just google it and go to the hmrc website links) which is a tax concession in relation to lumpsum payouts from overseas pensions. You need to read quite carefully , but my current understanding is as follows.

Normally you would be (income) taxable if resident in UK on any payout from an overseas scheme. However, if your payout is from an overseas employment pension scheme, ESCA10 can provide tax relief if your period of service in accruing that pension was made overseas (ie not if you lived/worked in UK and contributed to an overseas pension). It defines rules for establishing how to apply it if your period of service was mixed (ie UK and overseas).

As I read it, and in the simplest case, where you moved to (ie became resident) in Switzerland and accrued a pension whilst working here, you would be entitled to full exemption from income tax on a lump sum payment made from that pension scheme even after you return to UK. In more complex cases you may be eligible for partial relief as defined in other referenced concessions.
Be careful with this. Based on the linked document, it seems ESCA10 rules are changing.

http://www.hmrc.gov.uk/budget-update...esc-a10a11.pdf
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  #31  
Old 25.08.2012, 09:23
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Re: Cashing in Swiss pension and returning to the UK

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Be careful with this. Based on the linked document, it seems ESCA10 rules are changing.

http://www.hmrc.gov.uk/budget-update...esc-a10a11.pdf
Yes, sorry should have mentioned that - I did see it. However, from a quick scan my first impression is that this should not affect ESCA10 as we are discussing it here (for pension withdrawal). The purpose of "Part 7A" seems to be aimed at "disguised remuneration" paid through "third parties". What we have been talking about is withdrawal of normal pension contributions, which comprise money which was paid by the employer and employee from normal salary-based contributions. Of course, I am sure there are situations where Part 7A could be relevant - for now, I can't quite get my head round it, but feel free to read the rules http://www.hm-treasury.gov.uk/d/disg...muneration.pdf
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Old 28.08.2012, 13:51
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Re: Cashing in Swiss pension and returning to the UK

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What is the liability to uk tax in this transaction? I suspect it will be counted as income as its not possible to do the same thing with a uk pension. The money has to be for your main residence so you must be living their & liable to uk tax at the time!
Yes this is the key question which would apply to any country actually when transferring the pension. In this case, it is possible that if residence is established in the UK, it could be looked at as income if the pension is cashed out at a later point.

As to your other point, you mean that using the pension to buy a property is more a CH thing ?
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  #33  
Old 28.08.2012, 14:10
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Re: Cashing in Swiss pension and returning to the UK

thanks for the info. one day, i would also like to take the money and run!
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  #34  
Old 28.08.2012, 14:36
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Re: Cashing in Swiss pension and returning to the UK

Why you would want to return to the UK in the first place?
The property Market is still in the clouds and way over valued....with little credit history in the UK you will never get a mortgage ....many lenders want 30 percent as deposit to start with.....
I have returned to the UK many times from living abroad and it has always been a big mistake....unless your rich and live in hampstead would not bother....
I would come back to Switzerland tomorrow and am putting wheels in motion to try...
Why do you wish to return to this disaster movie anyway??? If you don't mind me asking!
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Old 28.08.2012, 14:51
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Re: Cashing in Swiss pension and returning to the UK

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Why you would want to return to the UK in the first place?
The property Market is still in the clouds and way over valued....with little credit history in the UK you will never get a mortgage ....many lenders want 30 percent as deposit to start with.....
I have returned to the UK many times from living abroad and it has always been a big mistake....unless your rich and live in hampstead would not bother....
I would come back to Switzerland tomorrow and am putting wheels in motion to try...
Why do you wish to return to this disaster movie anyway??? If you don't mind me asking!
you might have missed the bit where he already bought the house in the UK!
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  #36  
Old 28.08.2012, 17:09
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Re: Cashing in Swiss pension and returning to the UK

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you might have missed the bit where he already bought the house in the UK!
Oh dear! Be better putting your cash into gold !
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Old 28.08.2012, 18:22
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Oh dear! Be better putting your cash into gold !
You hold bulls make me laugh , you had no interest at $ 250 an ounce , but at 1600 it's a bargain!
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  #38  
Old 28.08.2012, 23:31
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Re: Cashing in Swiss pension and returning to the UK

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Why you would want to return to the UK in the first place?
The property Market is still in the clouds and way over valued....with little credit history in the UK you will never get a mortgage ....many lenders want 30 percent as deposit to start with.....
I have returned to the UK many times from living abroad and it has always been a big mistake....unless your rich and live in hampstead would not bother....
I would come back to Switzerland tomorrow and am putting wheels in motion to try...
Why do you wish to return to this disaster movie anyway??? If you don't mind me asking!

My mother in law has a terminal illness so we are back. Last time I left I sold my house. I regretted not having a bolt hole. So although we will probably head abroad again, this time I wanted a better safety net in case we have to return back to the UK again.
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  #39  
Old 28.08.2012, 23:32
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Re: Cashing in Swiss pension and returning to the UK

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Oh dear! Be better putting your cash into gold !

It was a repo. My other half is in the trade. We have made 10k already
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  #40  
Old 28.08.2012, 23:36
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Re: Cashing in Swiss pension and returning to the UK

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It was a repo. My other half is in the trade. We have made 10k already
You have not made anything until you sell......prices fell at the fasted recorded rate ever last month, I would not count your chickens quite yet!
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