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-   -   UBS pension Withdrawal Change - but what about tax? (https://www.englishforum.ch/leaving-switzerland/302078-ubs-pension-withdrawal-change-but-what-about-tax.html)

spooks 08.01.2021 21:08

UBS pension Withdrawal Change - but what about tax?
 
Hi
SO I had a call with UBS today where I have around 84k CHF Pension.
I asked if I can now withdraw for any other reason than a house, and she confirmed that now I can withdraw all as Uk has left the EU and said it is much easier than for a house deposit.

She also said I would pay Swiss Tax around 4-5000 CHF. Im good with that

The question now, which seems to confuse everyone is what about UK Tax.
I asked a financial advisor who stated that based on the below I would be liable for Swiss tax only

Is that correct? Has anyone else done this?
Thanks for your help
The GOV.UK Website is misleading and says tax upto 55%!

I am under 55 and employed!

https://assets.publishing.service.go...s_in_force.pdf

gipfelisturmer 09.01.2021 15:46

Re: UBS pension Withdrawal Change - but what about tax?
 
Erm, are you talking about the 3rd pillar?

You can only withdraw if you are leaving CH - haven't read that from your post.
Edit: I see you are based in the UK already.

kri 09.01.2021 15:47

Re: UBS pension Withdrawal Change - but what about tax?
 
Quote:

Originally Posted by dbucar (Post 3260633)
Erm, are you talking about the 3rd pillar?

You can only withdraw if you are leaving CH - haven't read that from your post.
Edit: I see you are based in the UK already.

Location says Portsmouth which is UK.

GJSpooks 09.01.2021 16:20

Re: UBS pension Withdrawal Change - but what about tax?
 
I left Geneva 2017...
Thanks

fatmanfilms 09.01.2021 16:21

Re: UBS pension Withdrawal Change - but what about tax?
 
Quote:

Originally Posted by GJSpooks (Post 3260662)
I left Geneva 2017...
Thanks

Unless it comes under disguised remuneration the Swiss tax should be all.

GJSpooks 10.01.2021 18:45

Re: UBS pension Withdrawal Change - but what about tax?
 
Hi all
Has anyone withdrawn this and have an idea with taxation in UK?
Or have any idea of a company who will know?

fatmanfilms 10.01.2021 21:06

Re: UBS pension Withdrawal Change - but what about tax?
 
Quote:

Originally Posted by GJSpooks (Post 3261214)
Hi all
Has anyone withdrawn this and have an idea with taxation in UK?
Or have any idea of a company who will know?

Read the previous post

GJSpooks 10.01.2021 22:43

Re: UBS pension Withdrawal Change - but what about tax?
 
Thanks but how can I be 100% sure it's not considered disguised remuneration which I'm sure it's not?

Do I need to do a tax self assessment?
Thanks so mucg

ZuriRollt 10.01.2021 23:37

Re: UBS pension Withdrawal Change - but what about tax?
 
Goodness, didn’t you UK people think about these things before? Good luck to you - maybe you could set-up an Engbrit.co.uk Forum! Personalöly, I’d already balk at a CHF 5000.- deduction on such a saving, but if you want it to be paid out that’s the way it is. Much better would be to get proper pension/tax advice

GJSpooks 11.01.2021 00:06

Re: UBS pension Withdrawal Change - but what about tax?
 
Quote:

Originally Posted by ZuriRollt (Post 3261384)
Goodness, didn’t you UK people think about these things before? Good luck to you - maybe you could set-up an Engbrit.co.uk Forum! Personalöly, I’d already balk at a CHF 5000.- deduction on such a saving, but if you want it to be paid out that’s the way it is. Much better would be to get proper pension/tax advice

thanks for nothing!

ZuriRollt 11.01.2021 00:39

Re: UBS pension Withdrawal Change - but what about tax?
 
Quote:

Originally Posted by GJSpooks (Post 3261395)
thanks for nothing!

Think that you need address that to the UK Govt., not me. But thanks anyway ;)

I don’t get your hostility - you know how much tax will be deducted on your pension savings when withdrawing from Switzerland. If I do a quick internet research, I can see what possibilities there are are of transferring to my next UK pension pot. I would have researched this long before Brexit if I’d been in the same situation. You are talking about a 55% tax from the UK side - seems to be a UK and not a Swiss English Forum problem

HickvonFrick 11.01.2021 00:50

Re: UBS pension Withdrawal Change - but what about tax?
 
Quote:

Originally Posted by ZuriRollt (Post 3261417)
Think that you need address that to the UK Govt., not me. But thanks anyway ;)

I don’t get your hostility - you know how much tax will be deducted on your pension savings when withdrawing from Switzerland. If I do a quick internet research, I can see what possibilities there are are of transferring to my next UK pension pot. I would have researched this long before Brexit if I’d been in the same situation. You are talking about a 55% tax from the UK side - seems to be a UK and not a Swiss English Forum problem

Id have no idea who to ask if I was moving back. This is probably the most fertile source of fellow uk expats who've been through the same experience.

Withdrawing is very sensible even with a 6% tax as he'd have the freedom to invest as he likes - Swiss pensions are highly regulated and very low performance.

ZuriRollt 11.01.2021 00:55

Re: UBS pension Withdrawal Change - but what about tax?
 
Quote:

Originally Posted by HickvonFrick (Post 3261422)
Id have no idea who to ask if I was moving back. This is probably the most fertile source of fellow uk expats who've been through the same experience.

I think that the most *fertile” and /or experienced resources have already replied. Let’s see, and please keep us posted on whether 55% UK tax needs to be paid!

GJSpooks 11.01.2021 00:57

Re: UBS pension Withdrawal Change - but what about tax?
 
Quote:

Originally Posted by ZuriRollt (Post 3261417)
Think that you need address that to the UK Govt., not me. But thanks anyway ;)

I don’t get your hostility - you know how much tax will be deducted on your pension savings when withdrawing from Switzerland. If I do a quick internet research, I can see what possibilities there are are of transferring to my next UK pension pot. I would have researched this long before Brexit if I’d been in the same situation. You are talking about a 55% tax from the UK side - seems to be a UK and not a Swiss English Forum problem



Not bring hostile. Just my needs must
I was advised that paying swiss tax would be the only taxation as based on the double taxation agreement

But no one seems to really know hence looking for an experienced person or company I can enquire with

GJSpooks 11.01.2021 01:02

Re: UBS pension Withdrawal Change - but what about tax?
 
https://assets.publishing.service.go...s_in_force.pdf

Section 18 item 2
Just wonder if this is relevsnt

bankman 12.01.2021 13:19

Re: UBS pension Withdrawal Change - but what about tax?
 
Id also be very interested in this question now that brexit has happened.

Can pillar 2 be withdrawn in total minus a few % tax in Zurich or Schwyz?

What happens to pillar 1?

GJSpooks 12.01.2021 16:14

Re: UBS pension Withdrawal Change - but what about tax?
 
I asked a tax expert who sent this

He said if bot a social security benefit this should apply

https://www.litrg.org.uk/tax-guides/...erseas-pension

Landers 12.01.2021 16:49

Re: UBS pension Withdrawal Change - but what about tax?
 
You need to differentiate between receiving a pension at an allowable age either as income or a lump sum and cashing in a pension fund before it's due, reverting it to cash. The links given so far refer to the former. I believe the Swiss will tax you on the latter, at a rate that is equivalent to the rate if that was your only income in the year but maybe not if you're no longer Swiss tax resident? Not sure about the UK. If you're UK tax resident when you cash it in then probably it's UK taxable.



Talk to HMRC - the horse's mouth so to speak.
Or you just don't mention it.

bankman 12.01.2021 22:13

Re: UBS pension Withdrawal Change - but what about tax?
 
Thanks but the question still stands

Can pillar 2 be withdrawn in total minus a few % tax in Zurich or Schwyz?

What happens to pillar 1?

I suspect that all pillar 2 can be taken out with Swiss tax payable but no Uk tax

GJSpooks 13.01.2021 00:59

Re: UBS pension Withdrawal Change - but what about tax?
 
Quote:

Originally Posted by bankman (Post 3262466)
Thanks but the question still stands

Can pillar 2 be withdrawn in total minus a few % tax in Zurich or Schwyz?

What happens to pillar 1?

I suspect that all pillar 2 can be taken out with Swiss tax payable but no Uk tax

That seems to be the way
That's how I've been advised no UK tax


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