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Posted Mon, 27 Mar 2023 11:19:55 GMT by anderssummers
Hello, I am a tax-paying UK resident, non-citizen, domiciled. I use to live in Switzerland a number of year ago, before moving to the UK. Last year I transferred a private pension from Switzerland (Pillar 3a) to my UK bank account; the amount was £26,000. I then transferred £20,000 to an ISA. in the new tax year (6 April 2023) I will transfer the balance £6,000 to an ISA. My question is, do I need to pay any tax on the amounts above? Also, I am completing an individual tax assessment for the 22/23 tax year, do I need to mention that I have transferred the above amount from my Swiss pension to a UK ISA? thank you
Posted Thu, 30 Mar 2023 14:09:18 GMT by HMRC Admin 25
Hi anderssummers,

As you are resident and domiciled or deemed domiciled in the UK, you are taxable on your world-wide income in the UK.

This will include your pension from Switzerland.
Article 18(2) advises that lumpsum payments of pensions are taxable only in Switzerland.

Regular pensions payments, paid periodically at stated times, are taxable only in the UK.  

As the UK uses the arising basis, you would need to declare your Swiss pension arising each year in a Self Assessment Tax return.  

You do not need to mention that you have transferred the pension into an ISA.

Thank you. 
Posted Thu, 30 Mar 2023 14:19:27 GMT by anderssummers
Sorry, I don’t think I was clear. I had a pension in Switzerland worth £26,000. It was barely making any returns (0.1% per year). As such I decided to close the pension in Switzerland, pay tax in Switzerland and transfer it lump sum to the UK. Here in the UK I put it into an ISA. I have already paid tax in Switzerland. Therefore, do I need to pay UK tax on this amount of £26,000 that I have transferred here? Please note that I am not retired (I am in my 40s). I am not receiving pension payouts regularly from Switzerland. I just transferred it from Switzerland because it was losing money when taking inflation into account.
Posted Thu, 06 Apr 2023 12:30:37 GMT by HMRC Admin 32

According to article 18(2) of the double taxation agreement between the UK and Switzerland, lump sum payments derived from pension schemes in Switzerland, are only taxable in Switzerland. 

1977 Switzerland/UK Double Taxation Convention as amended by the 2009 Protocol 1

You do not need to declare the lump sum payment in the UK. You can simply transfer the money to the Uk and deposit up to £20000.00 per annum to your ISA account.

Thank you.

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