Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Thread Tools Display Modes
Prev Previous Post   Next Post Next
Old 24.01.2018, 10:55
Join Date: Jan 2018
Location: London
Posts: 5
Groaned at 0 Times in 0 Posts
Thanked 4 Times in 1 Post
Cadbury has no particular reputation at present
UK tax on Swiss pension withdrawal


When leaving Switzerland a couple of years ago I did not manage to withdraw my pillar 2 because I previously made some voluntary contributions. I actually bought back a few years of Swiss Pensions to put more money in the pot and save tax on a bonus that was paid to me over there. The money was blocked for 3 years and now I have started counting the days until I can take the money back (well, everything but the compulsory part).
I am trying to figure out what the damage will be when HMRC ask for their cut. I have been reading contradicting information and would appreciate if someone could advise.
I spoke to HMRC this morning who transferred me to at least 3 specialists but none of them could answer properly. Their default attitude was "you are not 55 so it is income, you'll have to pay tax" which am afraid is a little bit more complicated than that. But they will look into it and should get back to me at some point.
My understanding was there was a tax-free treatment for payments of lump sums relating to foreign service. I have also just found the following

Switzerland: double taxation agreement, Article 18: Pensions
(2) Notwithstanding the provisions of paragraph (1), a lump sum payment derived from a pension scheme established in a Contracting State and beneficially owned by a resident of the other Contracting State shall be taxable only in the first-mentioned State.

Looks like tax is only due in Switzerland.
How did it work out for those of you who withdrew your Swiss pension?


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 on UK pension lump sum davidhenry Finance/banking/taxation 9 16.03.2021 10:46
Question about Swiss pension and tax in the UK swissmiss67 Finance/banking/taxation 10 28.01.2014 18:30
US tax on Swiss pension savings? Goldtop Finance/banking/taxation 17 23.12.2012 21:44
UK pension & Swiss tax advisor Medea Fleecestealer Finance/banking/taxation 4 09.11.2012 11:08
Tax on UK State Pension Phoebe Finance/banking/taxation 8 23.01.2008 12:50

All times are GMT +2. The time now is 06:51.

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0