Tax question on partial Swiss/partial UK residency...

[Scotty100]

Hi all,

I had a look through the forum for similar threads but couldn't see anything matching my exact situation, so hopefully someone can help.

I have lived in Switzerland the last 9 years or so and so haven't been a tax resident in the UK since 2005 or thereabouts. Recently my family moved back to the UK permanently, I am still working in Switzerland but travel most weekends back to see the family. I'm still a resident taxpayer in Switzerland as far as the Swiss tax authorities are concerned (at least for now, this may change in the future) but am not sure about my responsibilities re tax declarations in the UK for foreign earnings, can anyone advise?

I have no UK income at the moment, only Swiss, so regularly send money back to pay the bills. I will likely move back permanently myself in the next year or so. But at the moment should I be declaring anything to the UK tax authorities for top-up taxes or informing them of my travel arrangements? I have checked on the HMRC website but it's quite vague and doesn't really apply much to my current situation so I thought I'd ask here before I call them.

Any advice or info from an expert or someone with experience of this situation would be greatly appreciated

[BlasterBates]

You're tax resident in both countries, but your main residency is now the UK, because that is where your family is.

You will have to demonstrate to the Swiss authorities that you are not taxable on worldwide income. That should be relatively straightforward as your family is in the UK. In that case they will tax you only with Quellen-Steuer and you will be entitled to the ex-pat allowance (you may have to see a Swiss accountant).

IF you consider yourself mainly resident in Switzerland you would have to demonstrate to the UK authorities that you are mainly resident in Switzerland, but I doubt they would accept that.

You will need to submit tax returns in both countries; your Swiss income may well incur some additional tax in the UK, but that is complicated and worth a visit to a UK tax accountant, especially one who has experience of this. In view of a potential top-up tax in the UK it might not be worth your while to claim the ex-pat allowance.

[Scotty100]

Thanks for the reply, I suppose I am now a UK resident, or at least split resident and I just need to get on and speak to an accountant for advice.

[Clare@InTouch]

Thanks for the reply, I suppose I am now a UK resident, or at least split resident and I just need to get on and speak to an accountant for advice.

I definitely recommend you talk to an accountant before you move back here, there may be things you can do to reduce any taxes that may be due. When it comes to tax you often need to know and take action in advance though, so don't leave it until you've moved or you may miss an opportunity.

You may find these useful to determine where you're resident:

http://www.expatnetwork.com/Money/Ex...d-Domicile.cfm

http://www.hmrc.gov.uk/international/rdr3.pdf

http://www.kpmg.com/UK/en/IssuesAndI..._21May_acc.pdf


It may well be that you're just taxed on the money you remit to the UK, in which case you should go careful in exactly what you're remitting. Keep income and capital funds in separate bank accounts, and just remit from the capital funds - they are not taxed as income.