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Old 15.01.2012, 17:42
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B Permit Swiss Resident, UK Broker, Tax Implications

Hello All

I tried to see my specific case in all the existing recent threads or with search tool and nothing came....

Question is the following:
I am a European Union national, holding a Swiss B permit and living and working in Switzerland.

I have some investments like stock, funds, etc. which I currently trade with Swissquote. However, due to the products I am really interested on, it seems I can only get these products with UK brokers, such as selftrade or whichever other.

My question is:
If I were to have money in these UK brokers, apart from declaring those assets in my yearly tax return in Switzerland, how would I be taxed for those investments in the UK? If I were to sell those investments for a profit, would I be taxed in the UK, as oppossed to Switzerland where capital gains are tax free?

Thanks!
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Old 15.01.2012, 19:07
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Re: B Permit Swiss Resident, UK Broker, Tax Implications

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Hello All

I tried to see my specific case in all the existing recent threads or with search tool and nothing came....

Question is the following:
I am a European Union national, holding a Swiss B permit and living and working in Switzerland.

I have some investments like stock, funds, etc. which I currently trade with Swissquote. However, due to the products I am really interested on, it seems I can only get these products with UK brokers, such as selftrade or whichever other.

My question is:
If I were to have money in these UK brokers, apart from declaring those assets in my yearly tax return in Switzerland, how would I be taxed for those investments in the UK? If I were to sell those investments for a profit, would I be taxed in the UK, as oppossed to Switzerland where capital gains are tax free?

Thanks!
If you have really left the UK then thats OK, however don't return for at least 5 years or you may have a CGT bill to pay. It can get complicated if you owned the investments when you were a UK resident.
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Old 15.01.2012, 19:28
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Re: B Permit Swiss Resident, UK Broker, Tax Implications

No,these would be new investments that I do with a UK broker from Switzerland, investments I can not do with the Swiss brokers I know of.

Would you know what tax implications I could have?
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Old 15.01.2012, 19:53
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Re: B Permit Swiss Resident, UK Broker, Tax Implications

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No,these would be new investments that I do with a UK broker from Switzerland, investments I can not do with the Swiss brokers I know of.

Would you know what tax implications I could have?
It won't make any difference in which country you make the transactions, if it turns out that your liable to UK capital gains tax, you are liable end of story.
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Old 15.01.2012, 22:57
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Re: B Permit Swiss Resident, UK Broker, Tax Implications

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It won't make any difference in which country you make the transactions, if it turns out that your liable to UK capital gains tax, you are liable end of story.
Which products can you not trade in Switzerland? Sounds very odd?
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Old 18.01.2012, 22:47
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Re: B Permit Swiss Resident, UK Broker, Tax Implications

Hi

I would like to trade mutual funds which track indexes from HSBC. Not ETFs, though. Currently, with Swissquote the admin fee would make me pay about 2000CHF to buy around 20000CHF into the fund, so it is ridicoulous. Funny, Swissquote has hsbc as a primer partner, and should only cost me 9CHF per trade, but these funds are not considered within that category, even if hsbc is.....

Point is, these hsbc funds have a TER of .35 and the Pictect have a TER of .70, where mgmt fees are a nasty 0.60...
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Old 18.01.2012, 23:31
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Re: B Permit Swiss Resident, UK Broker, Tax Implications

You are liable to tax for income arising in the UK.

In simple terms, how that is taxed depends on your total taxable income arising in the uk. The basic rate band until April 5 is up to 35k, gains upto this amount, less the annual exemption of 10.6k are taxed at 18% and 28% on anything over and above.

However it depends how much money you are making, and whether your income falls into different rate bands as to how you want to allocate your exemption in terms of limiting the damage at 28%.

You are not entitled to exemption if your non uk Domiciled though
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Last edited by JBZ86; 19.01.2012 at 00:03. Reason: Wrong rates / Domicile clause
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