Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 10.07.2020, 12:25
VGL VGL is offline
Newbie
 
Join Date: Jul 2020
Location: UK
Posts: 1
Groaned at 0 Times in 0 Posts
Thanked 0 Times in 0 Posts
VGL has no particular reputation at present
Taxation on moving a 2 pillar pension from CH to UK

I left Switzerland a couple of years ago and left my 2 pillar pension on a Vested Benefits account in Canton Schwyz.
I am wondering if anyone has experience of withdrawing a 2 pillar pension from Switzerland as a UK tax resident? I have been given conflicting advice and the double taxation agreement is not clear to me.
I am 59 years old and have CH and UK nationality so want to decide where it is tax effective to be resident when I decide to move/access the pension.
Any help would be greatly appreciated. Thanks.
Reply With Quote
  #2  
Old 10.07.2020, 12:30
fatmanfilms's Avatar
The Marmite Moderator
 
Join Date: Apr 2010
Location: Verbier
Posts: 20,988
Groaned at 448 Times in 342 Posts
Thanked 22,225 Times in 11,520 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Taxation on moving a 2 pillar pension from CH to UK

Quote:
View Post
I left Switzerland a couple of years ago and left my 2 pillar pension on a Vested Benefits account in Canton Schwyz.
I am wondering if anyone has experience of withdrawing a 2 pillar pension from Switzerland as a UK tax resident? I have been given conflicting advice and the double taxation agreement is not clear to me.
I am 59 years old and have CH and UK nationality so want to decide where it is tax effective to be resident when I decide to move/access the pension.
Any help would be greatly appreciated. Thanks.
Unless it is treated as disguised remuneration the withholding tax should be all you need to pay. There was a cut off date before 'disguised remuneration' reared it's head it was to prevent UK residents who were passing fees abroad & into pension funds abroad.
I spent about 2 days researching this 6 years ago when there was a chance I might become UK tax resident, it's potentially complicated which explains the conflicting advise. Even HMRC's website was not clear on statutory exemptions that apply here. I am not at home where my records are due to lock down so can't quote the exact rules.
Reply With Quote
This user would like to thank fatmanfilms for this useful post:
  #3  
Old 27.08.2020, 09:58
Newbie 1st class
 
Join Date: May 2020
Location: zurich
Posts: 27
Groaned at 0 Times in 0 Posts
Thanked 6 Times in 3 Posts
Waterloo has no particular reputation at present
Re: Taxation on moving a 2 pillar pension from CH to UK

Quote:
View Post
Unless it is treated as disguised remuneration the withholding tax should be all you need to pay. There was a cut off date before 'disguised remuneration' reared it's head it was to prevent UK residents who were passing fees abroad & into pension funds abroad.
I spent about 2 days researching this 6 years ago when there was a chance I might become UK tax resident, it's potentially complicated which explains the conflicting advise. Even HMRC's website was not clear on statutory exemptions that apply here. I am not at home where my records are due to lock down so can't quote the exact rules.
Good Morning,
I posted up this morning as I am looking for some advice on pensions and I have no idea where to go as I just dont understand it all. Do you know if one can continue to pay into the mandatory swiss pension if you leave Switzerland?
Who would be the best person for me to speak to regarding all this pension malarkey? Thanks in advance for any advice you are able to give
Reply With Quote
  #4  
Old 27.08.2020, 10:01
Forum Legend
 
Join Date: Jul 2020
Location: Frick, Aargau
Posts: 2,521
Groaned at 51 Times in 45 Posts
Thanked 3,415 Times in 1,641 Posts
HickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond reputeHickvonFrick has a reputation beyond repute
Re: Taxation on moving a 2 pillar pension from CH to UK

Quote:
View Post
Good Morning,
I posted up this morning as I am looking for some advice on pensions and I have no idea where to go as I just dont understand it all. Do you know if one can continue to pay into the mandatory swiss pension if you leave Switzerland?
Who would be the best person for me to speak to regarding all this pension malarkey? Thanks in advance for any advice you are able to give
You would have no reason to pay in when you leave as you aren't paying Swiss taxes which can be deducted. The only reason for paying into a pension as opposed to investing the assets yourself in a regular account is tax efficiency.

Do you have pillar 3a assets? If so I believe the advice is to move them into a bank in Schwyz (lowest tax canton) prior to your leaving and then withdrawal. I think you should also move your pillar 2 (workplace pension) to a Schwyz based vested benefits account - but I will wait for someone to confirm whether that is the correct procedure.

You must move these assets before you leave Switzerland - very important.

After you withdraw the money following leaving Switzerland you can then invest it in a regular investment account.
Reply With Quote
  #5  
Old 27.08.2020, 10:02
fatmanfilms's Avatar
The Marmite Moderator
 
Join Date: Apr 2010
Location: Verbier
Posts: 20,988
Groaned at 448 Times in 342 Posts
Thanked 22,225 Times in 11,520 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Taxation on moving a 2 pillar pension from CH to UK

Quote:
View Post
Good Morning,
I posted up this morning as I am looking for some advice on pensions and I have no idea where to go as I just dont understand it all. Do you know if one can continue to pay into the mandatory swiss pension if you leave Switzerland?
Who would be the best person for me to speak to regarding all this pension malarkey? Thanks in advance for any advice you are able to give
You probably can't pay in after you leave, but without knowing where you are going to it's impossible to know for sure.
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
2nd pillar / semi-autonomous pension funds / AXA Winterthur pension changes Dr Mick Insurance 10 13.04.2018 19:25
2nd pillar can help with Taxation? MDCP Finance/banking/taxation 7 14.01.2018 18:37
2nd pension pillar and 3rd pension pillar comparison pawp Finance/banking/taxation 1 24.09.2017 22:22
Taxation of AHV/UI/2nd pillar cst Finance/banking/taxation 1 27.11.2013 18:05
Self Employed Pension - must I have a pension (3rd pillar)? bobo_97 Business & entrepreneur 10 07.08.2011 08:07


All times are GMT +2. The time now is 20:31.


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