Getting a foreign pension paid out early - what are the tax implications?

rv4870680

I am tax resident and living in the UK. Due to some prior work abroad 20 years ago I have built up a small pension pot worth £5,000 which sits in a corporate pension fund in Switzerland. So far the money has just been sitting there as cash and the value of it just gets eaten up by inflation over time. That's why I am considering getting those £5,000 paid out so I can invest it into stocks instead. The corporate pension fund has confirmed that they can pay out the money to me. I am 45 years old.

Will I incur any UK tax if I get my Swiss pension paid out now and how much will it be? Are there any better alternatives to taking out the money and incurring the tax charge?

Thanks!

squashtraveller

This seems similar to my position where I have a pension fund in Australia (superannuation) but tax resident in the UK. If I claim the money, I would need to declare to HMRC and pay the appropriate tax - although I understand I could take 25% tax free. Not sure if this helps. 

Marcon

rv4870680 said:

Will I incur any UK tax if I get my Swiss pension paid out now and how much will it be? Are there any better alternatives to taking out the money and incurring the tax charge?

The final Qs and As on this thread might be useful: https://community.hmrc.gov.uk/customerforums/pt/f6bc021c-0a52-ec11-a3ee-00155d9c6b71

Whether there are any 'better alternatives' depends on (a) what alternatives the Swiss scheme offers and (b) your current situation.

rv4870680

Thanks squashtraveller and Marcon, this helps!