Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 24.03.2008, 03:31
Member
 
Join Date: May 2007
Location: Dubendorf
Posts: 244
Groaned at 7 Times in 4 Posts
Thanked 30 Times in 23 Posts
joeyying has no particular reputation at present
Tax for Interest

In UK, if your bank account has less than 4000GBP in a calender year, your interest will be tax free.

What is the amount in Switzerland so that my interest can be tax free here?
Reply With Quote
  #2  
Old 24.03.2008, 07:58
jbrady's Avatar
RIP
 
Join Date: Apr 2007
Location: Sunny Aargau
Posts: 1,045
Groaned at 14 Times in 9 Posts
Thanked 719 Times in 359 Posts
jbrady has a reputation beyond reputejbrady has a reputation beyond reputejbrady has a reputation beyond reputejbrady has a reputation beyond repute
Re: Tax for Interest

Not sure of the exact amount - much more complicated here.
Check out this link first - Swiss tax deductions - UK mortgage interest?
Then you should understand why it is not so black and white
Reply With Quote
  #3  
Old 24.03.2008, 08:12
AbFab's Avatar
Forum Legend
 
Join Date: Sep 2006
Location: Zürich
Posts: 7,540
Groaned at 318 Times in 214 Posts
Thanked 10,122 Times in 3,567 Posts
AbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond repute
Re: Tax for Interest

AFAIK all deposit accounts attract 33% witholding tax, which can be reclaimed on your Swiss tax return (the amount returned will be determined by your income tax liability.)
Reply With Quote
  #4  
Old 24.03.2008, 09:05
gbn's Avatar
gbn gbn is offline
Forum Legend
 
Join Date: Dec 2005
Location: Zuri Oberland
Posts: 2,732
Groaned at 109 Times in 74 Posts
Thanked 2,358 Times in 1,109 Posts
gbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond repute
Re: Tax for Interest

Quote:
View Post
In UK, if your bank account has less than 4000GBP in a calender year, your interest will be tax free.

What is the amount in Switzerland so that my interest can be tax free here?
UK citizens have the tax free personal allowance on all income.
For 07/08, this is GBP 5225.

Interest is counted as income.
If you don't earn in the UK, then interest is your only income

That means if your interest is less than this, you can claim it back the 20% "withholding tax".

At 5% interest, that's well over 100K in your account.

The "fact" you stated is simply not true for the UK.
Reply With Quote
  #5  
Old 27.03.2008, 20:13
Goldtop's Avatar
Forum Legend
 
Join Date: Feb 2008
Location: Zurich
Posts: 2,857
Groaned at 11 Times in 11 Posts
Thanked 905 Times in 625 Posts
Goldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond repute
Re: Tax for Interest

Quote:
View Post
What is the amount in Switzerland so that my interest can be tax free here?
Every cent of interest is added to gross taxable income. If the interest was less than CHF 50, then the bank may opt to not deduct tax at source. Nevertheless, you must declare it in the tax return.
Reply With Quote
  #6  
Old 27.03.2008, 21:56
dannyt986's Avatar
Forum Veteran
 
Join Date: May 2005
Location: Wollerau, Schwyz
Posts: 1,829
Groaned at 26 Times in 19 Posts
Thanked 722 Times in 483 Posts
dannyt986 has a reputation beyond reputedannyt986 has a reputation beyond reputedannyt986 has a reputation beyond reputedannyt986 has a reputation beyond repute
Re: Tax for Interest

Quote:
View Post
The "fact" you stated is simply not true for the UK.
Yes, I was also perplexed with this statement.

If you are UK resident unless you have a ISAs your interest is taxable and is paid net of wht.

If you are not uk resident you dont need to declare your uk interest in your uk tax return (which you might have to complete for other reasons eg directorships or property income) and can have it paid gross. Of course you have to declare it in Switzerland.

D
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Swiss tax deductions - UK mortgage interest? dragontree Finance/banking/taxation 58 06.02.2013 09:48
Anyone with an interest in Classic cars? stuartq Transportation/driving 16 31.05.2008 18:38
Mortgage Interest Payment dmarkd Finance/banking/taxation 4 31.01.2008 21:55
Swiss interest rates clive7 Finance/banking/taxation 3 17.05.2007 17:30


All times are GMT +2. The time now is 12:24.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0