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Old 22.05.2019, 23:35
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TAX on investments outside of Switzerland

Have used a few systems in the UK to put some money to work (P2P Lending via RateSetter, some trading via Freetrade, and a few shares via Crowdcube), but now that I am relocated to Switzerland and still looking to keep using those platforms, need to understand what possible TAX implications are there for both UK and Switzerland?

Additionally, I'm in the process of buying some shares in another company in the UK (5k) via a transfer form and aware will need to pay a stamp duty, but wondering if there's anything to do in Switzerland before or after the transfer/purchase?
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Old 23.05.2019, 09:34
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Re: TAX on investments outside of Switzerland

When you arrive, you'll be taxed at source.

You then have to file a full declaration if you earn over 120k CHF or have "significant" wealth (level depends on canton).

When you file, you have to declare your wealth (worldwide) on 31 Dec, and all income you have received (dividends, interest, etc.)

Doesn't matter where the investment is, you need to declare it and be taxed on it.
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Old 23.05.2019, 10:54
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Re: TAX on investments outside of Switzerland

Thanks @Enohzee!

The only question for me remains, what tax do I still need to pay in the UK?
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Old 23.05.2019, 10:58
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Re: TAX on investments outside of Switzerland

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Thanks @Enohzee!

The only question for me remains, what tax do I still need to pay in the UK?
I don't think you will need to pay any tax to the UK, but maybe check if someone else replies, as I'm not 100% sure.
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Old 23.05.2019, 11:55
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Re: TAX on investments outside of Switzerland

If you're Swiss resident after April 5th, you will not need to pay any UK capital gains or income tax to HMRC. You will also no longer need to file a UK tax declaration but you need to inform HMRC of this. From the Swiss perspective you become liable for tax from January 1st and must declare your WW wealth as of Dec 31st in the preceding year.

Technically you will be liable for tax for those 4 months in both jurisdictions, however thanks to a double tax treaty you can deduct the UK tax you pay pro-rata for that period from your Swiss taxes. Capital gains may not be deducted if there is no CG in your home canton.

As to UK (foreign) investments when you're resident here, there is nothing to do re Switzerland. You only need to add the value of the investment as per Dec 31.
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Old 23.05.2019, 14:48
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Re: TAX on investments outside of Switzerland

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If you're Swiss resident after April 5th, you will not need to pay any UK capital gains or income tax to HMRC. You will also no longer need to file a UK tax declaration but you need to inform HMRC of this. From the Swiss perspective you become liable for tax from January 1st and must declare your WW wealth as of Dec 31st in the preceding year.

Technically you will be liable for tax for those 4 months in both jurisdictions, however thanks to a double tax treaty you can deduct the UK tax you pay pro-rata for that period from your Swiss taxes. Capital gains may not be deducted if there is no CG in your home canton.

As to UK (foreign) investments when you're resident here, there is nothing to do re Switzerland. You only need to add the value of the investment as per Dec 31.
If the OP returns to the UK before 5 full UK tax years he potentially could have a UK CGT tax bill, so it would make sense to use annual CGT allowance 12,000 (19/20) & keep records for annual gains that that match UK tax years & in sterling. On a 5K holding it's unlikely to be an issue but not impossible. If you are non resident an the date of repurchase you can bed & breakfast shares overnight, a UK resident needs to wait 30 days before repurchase.
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Old 23.05.2019, 14:55
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Re: TAX on investments outside of Switzerland

You need to be certain on the definition of "Relocated".



It is very easy to still remain tax resident in the UK while also being tax resident in Switzerland. Especially if you still own any property in the UK.


You have to apply for HMRC in order to leave officially.


If you haven't officially left, you may still have some tax liability in the UK. Which is fine - if they never find out. But they might...



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Ian
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Old 23.05.2019, 14:58
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Re: TAX on investments outside of Switzerland

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You need to be certain on the definition of "Relocated".



It is very easy to still remain tax resident in the UK while also being tax resident in Switzerland. Especially if you still own any property in the UK.


You have to apply for HMRC in order to leave officially.


If you haven't officially left, you may still have some tax liability in the UK. Which is fine - if they never find out. But they might...



Regards






Ian
With exchange of information, HMRC's connect system, mobile phone records & Flight information HMRC will know exactly how many days at midnight you were in the U.K.
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Old 23.05.2019, 15:24
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Re: TAX on investments outside of Switzerland

So I need to give HMRC a call and update them on my status.

Had my last pay in the UK at the end of April, and from now on to be in Francs (relocation and intending to stay here for a few years). So maybe because I received pay after 5th April this year and paid tax on it, might still be tax obedient for this year?

Also, my holdings in the UK are over 12K, out of which about 7K is locked until the November in an ISA P2P lending scheme, so that's complicating matters a bit too... I know I cannot use ISA anymore, but cannot take the money out until then anyway
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