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Old 10.03.2017, 00:56
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Tax on UK company liquidation proceeds

Hello,

I have searched the forums and only found one other post asking something similar in 2015, however it wasn’t answered so I would like to try.

I have a UK Limited company operating in the UK. When I come to Switzerland to start a permanent job I intend to close and liquidate the company. Any remaining capital in the company can be paid out. My UK accountant calls this Capital Distribution. In the UK there is a tax to be paid on the proceeds received from this distribution. I will be in Switzerland when this happens and I wanted to understand what Swiss taxes may need to be paid on the distribution? Does the tax treaty allow for claiming back the UK tax?

I'm likely to be living in the canton of Zurich or possibly Aargau.

Also, I intend to seek professional advice from a Swiss tax accountant which I have found a number of recommendations in the forum however if anyone has done this and can recommend who they used that would be helpful.

Thank you for any help or feedback.
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Old 10.03.2017, 09:22
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Re: Tax on UK company liquidation proceeds

In Switzerland we are taxed on our world wide income, and assets are also taxed, but at a low rate.
You would probably also have to pay UK tax on the company funds as you would still be domiciled in the UK, - ask your accountant.

Do you need to wind up the business? Can't you leave it dormant? You might go back to the UK again.
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Old 13.03.2017, 22:58
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Re: Tax on UK company liquidation proceeds

Thank you for your response.

Is there any differentiation in types of income in Switzerland and their rate of tax? In the UK in the case of this distribution described above it has a better rate of tax than normal income or dividend tax and it is this beneficial rate that I am trying to maintain.

Good point about still being domiciled in the UK, I will check that.

The reason for closing the business is to release the accumulated profit at a good tax rate. The move to Switzerland is complicating the process a little.
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