Extra-Statutory Concession A10

internationalnondom

Looking for an advice on this one, any comment is welcome:

I have a vested benefits account (Freizügigkeitskonto) in Switzerland related to an overseas pension scheme from an employment outside the UK where 100% of my total service was abroad (I was not UK resident at that time).
I could receive this amount as a lump sum retirement benefits. I am now a non domiciled UK resident and if I do not remit this sum back to the UK my status should qualify for a full exemption on the UK Income Tax according to the Extra-Statutory Concession A10.
The Swiss Tax Office will levy a Swiss withholding tax on the amount so to claim a refund I will have to inform HMRC so I want to make sure they will not request UK income tax.

Do you agree I am qualified for a full exemption on the UK Income Tax?

Thank you in advance for your help!

internationalnondom

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jimmo

As you have had no other replies, I have no recollection of ever dealing with a claim to ESC A10 but the wording seems straightforward enough.

http://www.hmrc.gov.uk/manuals/eimanual/eim15083.htm


Your description of your own situation appears to match the concession entirely so it does seem to apply to you and your lump sum retirement benefits will not be chargeable to UK tax.

Therefore I can’t see the relevance of your non-dom status or whether you remit the money to the UK or not.

As regards the Swiss withholding tax I am more than a little rusty on that too but, from memory, the Swiss Tax people will require a certificate of confirmation that you are chargeable to UK Tax on the lump sum.

As you are not you are unlikely to be able to obtain a certificate.

In this respect there is a difference between those who are chargeable to UK Income Tax on the lump sum but whose liability happens to be nil, and those who are not chargeable.