Dual tax on income in Switzerland

Hello, I am aware that there is a dual taxation agreement on income with Switzerland. However I would like clarification on my situation as to whether I am eligible to claim back tax paid in Switzerland. I am a UK resident and UK domiciled and always have been. I am retired and have state pension income, and also a SIPP in drawdown that I do not currently take regular payments from - but I would like to, subject to the dual tax position. My wife and I have a second home in the canton of Vaud in Switzerland. I submit (via an agent in Switzerland) a Swiss tax return each year and the tax paid is calculated on world wide assets and also on income. Each year I submit to my Swiss agent my UK self assessment tax return for the Swiss income declaration. I have no other income. At present my income is less than the UK personal allowance and so I don't pay UK tax on it and so thus far there has been no potential for reclaiming any Swiss tax on income. However I now would like to drawdown regular income from my SIPP that would take me into the 20% basic tax bracket. It will also increase my Swiss income tax significantly, likely to the point where I would potentially effectively be paying 20-25% on that, plus the 20% basic rate tax in the UK. My question is, can I claim some, or all (subject to how much UK tax is paid), of the Swiss tax back against my UK income declared in my UK tax return? I hope my explanation is clear. Thank you in advance. Graham Hills

Hi ,
 

This forum is for general queries only and is intended to help you self-serve. We are unable to provide specific advice tailored to individual circumstances. Please therefore refer to : Tax on foreign income    or telephone 0300 200 3310  . Thank you .

Thank you, but this not about tax on Foreign Income. It is about Reclaiming Foreign tax on UK Income. Can you direct me to the correct area to research this further and the relevant telephone number please. Thank you Graham Hills

Not HMRC...the Swiss DTA is clear re pensions...ONLY taxable in one country (article 18) therefore, you cannot claim foreign tax credit in either country for tax paid on it in the other...the reason being, you only need to provide the information to one country, dependent on your tax residence. If you are statutorily tax resident in the UK only, then thats the UK and you dont provide the information in Switzerland, if you are statutorily tax resident in both countries you need to determine treaty residence (article 4) to work out which country has the right to tax the pension

Hi Graham,
HMRC do not refund foreign tax.
You can only claim foreign tax credit relief if you have UK tax to pay on the same source of income. You need to contact the foreign authority if they have exceed the limit set under the double taxation rules.
Thank you.