Swiss pension taxable here?

[UnclePhilip]

In filling out our self assessments the other day, I came across a new one. My wife began to get a small Swiss pension (she's dual national Swiss-UK, domiciled here). It's from some work many years ago, a modest State pension (AHV). So, in March 2016 she got a lump sum backpayment (due to late claim) and regular small sums began in the tax year 2016-17. Really modest, less than £20 per week....

It was late, I began googling, but gave up in despair. Does anyone know whether such sums (both lump and regular) have to be declared on the UK SA? Are they paid net etc etc?

Confused,

Uncle

[Alaric]

Does anyone know whether such sums (both lump and regular) have to be declared on the UK SA? Are they paid net etc etc?

There's a double taxation agreement between the UK and Switzerland, so the pension income is only taxable once. A quick Google search fails to establish definitively whether that's in Switzerland or the UK. Isn't there a P60 lookalike or a State Pension statement lookalike coming from the Swiss side which would establish whether the income is gross or not?

[genou]

In filling out our self assessments the other day, I came across a new one. My wife began to get a small Swiss pension (she's dual national Swiss-UK, domiciled here). It's from some work many years ago, a modest State pension (AHV). So, in March 2016 she got a lump sum backpayment (due to late claim) and regular small sums began in the tax year 2016-17. Really modest, less than £20 per week....

It was late, I began googling, but gave up in despair. Does anyone know whether such sums (both lump and regular) have to be declared on the UK SA? Are they paid net etc etc?

Confused,

Uncle

Treaty is here - https://www.gov.uk/government/uploads/s ... landUK.pdf
Per 18(1) the ongoing pension is taxable only in the UK. Per 18(2) the lump sum is taxable only in CH .

If it is a pension from the CH government, it seems the ongoing payments are nevertheless still only taxed in the UK per 19(2)(b) since she has UK nationality.

[TedSwippet]

It might be just a small saving here, but it is worth noting that for 2016/17 and earlier tax years you can take a 10% deduction for foreign pensions, meaning that only 90% of the payment is taxable.

Unfortunately this deduction was scrapped with effect from April 2017.

[UnclePhilip]

Thanks to all for replies....

And to Genou, thanks especially for that link to the treaty; that is brilliant! Reading that, I am comforted that her lump sum doesn't need to be put in her UK SA. Very helpful indeed

Uncle