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UK tax implications of repatriating Swiss pension

A long time ago, I worked for a Swiss company and built up a pension fund. Haven't worked for them or added to the pension since about 1999 and lived in the UK since 2000.

The fund is sitting in a "Vested Benefits Policy" with Allianz in Switzerland.

I am unclear about whether there would be UK tax to pay if I cashed this in and brought the cash into the UK.

The Swiss would tax at 6-8% - I can live with that.

Does

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apply? That would seem to say that only Swiss tax applies. Thanks for any pointers or suggestions

WW.

Reply to
therealwanderingwombat
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Switzerland is EFTA, so free movement of capital applies.

Reply to
Adrian

I think you are saying 6-8% tax will be deducted at source. Is that definate and no-debate about it, regardless of circumstances, etc?

I have a similar issue with a US state pension, a US 401K plan (company pension scheme) and a US Individual Retirement Account (like a UK ISA, but invested pre-tax).

AIUI, when I want to start taking (in small bits), I expect there will be tax deducted at source (as a foreign person). Hopefully when I declare the income (which I will take slowly) on my UK tax return and declare the US tax paid, I'll get most of the US tax paid back (as per UK tax allowances).

There seems to be no provision to allow foreign pensions to transfer into a SIPP, or IRAs to transfer into an ISA. Am I correct?

Fred

Reply to
investor

AIUI that depends on (a) whether your "small bits" are payments of a pension or lump sums and (b) whether you are a US citizen. If they are payments of a pension and you are not a US citizen then I think the UK/US DTA gives the UK sole taxing rights.

After that things get more complicated and you need someone with more knowledge/time/inclination/wet towels.

Reply to
Robin

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