You might check status of the agreement and current text here:
Yes. Still the same version as since December 19th 2012.
People are asking if the same rules still apply, I found via the Uk link that a new protocol is going to applied from Jan 1 2020!
The Swiss link someone gave still only shows the old law.
I have not yet understood the implications, but it starts like this:
If someone has a good understanding of any implications of taking pillar 2 out to the UK now, please let us know
One interesting thing I did find out is this, having just spoken to LOB in Bern.
If you left Switzerland over a year ago, for the UK, LOB will wait four months before they will forward your letter to HMRC.
At the moment, the UK side will likely take at least several months to get back to them...
So a lot of patience required! (Say 7 months or more).
Interesting find with possible implications for withdrawing pillar 2 tax free?
It seems ESC A10 no longer applies and has been replaced. From the quote below, it seems things have changed again after the Finance act of 2017!
Does anyone understand whether a lump pillar 2 withdrawal would fall under Part 9 of Itepa or 395B ITEPA? OR to put simply, whether for people interested in doing this now (After 2017), this whole relying on the tax treaty still applies at all. Would they still be tax free?
(I am going to chase this with HMRC but previous posters have had a hard time getting to talk to right specialist).
I have posted here because not many people who will try this route will be non-UK resident for the entire year! So hopefully they can rely on part 9 Itepa 2003? Also, it is interesting that the law text only says non-resident. I assumed that would be relevant at the time of withdrawal. Yet the guidance says non-resident for the whole year!
PS. I am referring to build up before 2011.
edit: found a really good website explaining the 2017 changes: https://www.taxinnovations.com/overs...-changes-2017/
still not 100% sure what that means, still tax free except for any interest rate build up after 2017?
Just wondering if after bexit I can get the rest of my pillar 2 or will that be after the transition period is over
No one knows yet. But depending on how aligned the UK want to be, I expect that the obligatory part will have to stay in Switzerland. Because if the UK strays too far from standard EU rules on pension treatment, UK citizens in Europe might lose many rights under a retaliation policy.
I think it will be too messy to change these rules too much. But it all depends on transition negotiations, if Brexit goes ahead
Let's hope for a no deal brexit then
Just a heads up, I spoke to the people at BVG/CHAEIS recently - who get the funds of expats who leave who have not made arrangements for their own fund to hold pillar 2 contributions - who said a lot of people are suddenly withdrawing benefits from their freizugigkeistkonto.
I wonder if this is because any law changes are impending? Either Swiss laws or changes to the UK-CH protocol startnig on January 1st 2020? If so, are any of you aware what they are and how they affect withdrawals from pillar 2 or 3?
By the way, I asked for a quote from a tax professional, to clarify whether pillar 2 withdrawals still fall under the grandfathering rules in the UK (since the law was updated in April 2017). I was quoted 4000 pounds for a small pot and this was also the case if they concluded it no longer does qualify.
I was under the impression that for funds built up under Swiss (foreign service) prior to 2011 the situation is quite straightforward, but perhaps it is not
If I understand it correctly some changes to UK-CH agreements were made to plug loop holes were a full tax avoidance was possible.
Just an update. I rang the UK tax office directly and spoke with a very knowledgeable technical specialist. He confirmed that for me, article 18 (or 19) of the treaty means that the pillar 2 lump sum is still NOT taxable in the UK. This info needs to be put into the 'other information' box on the self assessment form. So you do need to mention it and what you are applying the DTA to.
I did not need to apply anything like the successor of the ESC A10 provision (grandfathering rules). Although they would have worked for funds built up until 2011 as well. But the treaty itself is enough.
Disclaimer: I am not a tax advisor. If you need to check your situation, I recommend ringing them and/or taking professional advice.
I have been looking at this and thank you very much to the posters who saved me a lot of time. To clarify in addition to what i read, DTT always prime over domestic law, so all the 2017 hardening of pension repatriation to the UK did not impact the CH UK provisions mentioned above for lump sums.
Kindly note that all of the above is my personal opinion that I may or may not apply to myself and is not advice of any kind to anybody.
I know it's old thread however I was wondering how Pillar 2a withdraw would work when you move to no-country leaving CH (go sailing ) ?
Since you'd be country-less (180 days outside of any country) does it mean no tax at all on 2a withdrawn ?
withdrawn /withdrawn /withdrawn
Just wanted to say thanks for migrating this topic from EF. It has some important pension related information and has been referenced in 2nd and 3rd pillar after leaving Switzerland - #30 by anneaun - Banks, Insurances & Third Pillar - Mustachian Post Community
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