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Old 23.06.2008, 17:38
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Do I need to pay Swiss tax on my UK redundancy payment?

Hi everyone

I have been working from my home in Switzerland for my UK-based employer since my partner and I moved here last November. (He was officially seconded here for three to five years but I just made a request to my employer to do my job remotely from Switzerland.) I am not paying UK tax anymore so pay Swiss tax instead.

However, my division of the company was sold to another company a few months ago and they are making redundancies in the coming months. I am due to be made redundant at the end of October and will receive a UK redundancy payment. This is not taxable in the UK. However, does living in Switzerland mean I need to declare this amount on my tax return and pay income tax on it? Or is anyone aware of some kind of concession for such situations? I suppose it's my own fault for choosing to live outside the UK so my income is subject to that country's taxes...

All info will be gratefully received.

Thanks,

Di
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Old 23.06.2008, 18:10
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Re: Do I need to pay Swiss tax on my UK redundancy payment?

You are a Swiss resident. You are taxable here on your global income. Swiss tax laws treat redundancy payments as income. It is fully taxable. You are also liable to social security (AHV/AVS, etc.) contributions.

A partial concession may be possible, if you are close to retirement and the redundancy payment is considered as pension compensation.
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Old 23.06.2008, 18:28
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Re: Do I need to pay Swiss tax on my UK redundancy payment?

Thanks Goldtop - as I suspected. I suppose that it is just downright cheeky to expect not to be taxed on it, as I am Swiss resident. Good to know though as I would have been wondering...
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