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Old 17.11.2012, 00:23
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UK Investment... Tax?

Hello,

So I have finally gotten off my arse and sorted most things out for the big move and I am now down to working out my tax affairs. In the UK there is a family business that I own shares in however I am transferring those shares to the new Swiss business as I want everything under 'one roof' (other investments are already done in Switzerland, I presume I pay Swiss tax on any income). That will be the only tie I and the Swiss business will have to the UK financially as I closed my UK bank accounts and used the money to fund the move to Switzerland.

I am puzzled as to whether I (or more specifically the new business) would be liable for any taxes in the UK from any income derived from shares in the family business, do I have to pay taxes in the UK or can I have them paid in Switzerland?

Am I right in thinking that if I were to invest in property in the UK under a Swiss company that any income derived through those investments would have the tax paid the same way as the family business shares income?

Thank you
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Old 17.11.2012, 01:01
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Re: UK Investment... Tax?

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Hello,

So I have finally gotten off my arse and sorted most things out for the big move and I am now down to working out my tax affairs. In the UK there is a family business that I own shares in however I am transferring those shares to the new Swiss business as I want everything under 'one roof' (other investments are already done in Switzerland, I presume I pay Swiss tax on any income). That will be the only tie I and the Swiss business will have to the UK financially as I closed my UK bank accounts and used the money to fund the move to Switzerland.

I am puzzled as to whether I (or more specifically the new business) would be liable for any taxes in the UK from any income derived from shares in the family business, do I have to pay taxes in the UK or can I have them paid in Switzerland?

Am I right in thinking that if I were to invest in property in the UK under a Swiss company that any income derived through those investments would have the tax paid the same way as the family business shares income?

Thank you
Welcome to the forum. That's a lot of questions, and your affairs sound complicated enough to warrant and need professional advice and you dont really provide enough detail for a full answer especially if any significant sums are involved.

I assume below you dont have a forfait/pauschal agreement.

In a nutshell, as a Swiss resident you have to declare and are taxable on your worldwide income. Property income will however not be taxed, but only will influence the tax rate you pay.

You will have to declare you UK property income in the UK too. Dividends from shares in UK companies will be subject to withholding tax in the UK. You will get involved in the application of double tax agreement rules. You certainly cannot just elect where the tax happens.

Also bear in mind that private capital gains are tax free in Switzerland, so you really would have to have special reasons to want to hold property in a shell company.

As I said a few relevant thoughts, but no way a complete answer. Good luck.
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Old 17.11.2012, 15:43
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Re: UK Investment... Tax?

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Welcome to the forum. That's a lot of questions, and your affairs sound complicated enough to warrant and need professional advice and you dont really provide enough detail for a full answer especially if any significant sums are involved.

I assume below you dont have a forfait/pauschal agreement.

In a nutshell, as a Swiss resident you have to declare and are taxable on your worldwide income. Property income will however not be taxed, but only will influence the tax rate you pay.

You will have to declare you UK property income in the UK too. Dividends from shares in UK companies will be subject to withholding tax in the UK. You will get involved in the application of double tax agreement rules. You certainly cannot just elect where the tax happens.

Also bear in mind that private capital gains are tax free in Switzerland, so you really would have to have special reasons to want to hold property in a shell company.

As I said a few relevant thoughts, but no way a complete answer. Good luck.
They are complicated to an extent although I think it is more my explanation of things.

Yes, I have no Forfait fiscal/Pauschalbesteuerung.

Ah right so while the income from any property will not, my rates could change and I pay more tax anyway?

Okay, seems fair enough. The amount I expect to get per year is around 5,000... in the grand scheme of things that is not very much although I don't want to be taxed to death obviously

In my opinion it is easier to manage things if it is in a shell company that and if things go to hell, limited liability is always a good thing

I think I will see a tax advisor and discuss this in greater detail, I was just hoping that I could work it out from online research so I can save a bit of money short term

Thank you
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