Will I be taxed on overseas redundancy when I return to UK?

Returning_home

I am taking voluntary redundancy from a position based in Geneva Switzerland. It will be tax free in Switzerland as organisation i work for is tax free, and will be paid out in Switzerland, but will I then be taxed on transferring the money to UK on my return to UK?

Could be around £45k in total, to be paid out in April, and I plan to return to uk to look for work in May.

I believe there is a double taxation agreement between Switzerland and UK which means that I am not liable for tax in UK, if it has been taxed already in Switzerland (?).

Any advice much appreciated.

getmore4less

Taxation treaties don't reduce the tax they just stop you getting taxed twice, you can offset any liability with tax allready paid.


What tax advice did you get when you started the job.

prefix google searches with HMRC and you will get some links

Try this one.

http://www.hmrc.gov.uk/international/return-uk.htm

Randvegeta

If you live and work in Switzerland, and are moving BACK to the UK, it seems somewhat ridiculous to expect the UK to get a chunk of your overseas earnings/redundancy pay in tax.

I'm not saying it's not due, but if it IS, then what a f***ed up system we have here.

Unless you are classified as a tax resident then it probably is taxable in the same way as it would be if the payout were from the UK.

The double taxation treaty means whatever tax you pay in the overseas territory would be deductible from what you would pay here, not an exemption from paying tax at all.