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bigduckontax, Accountant
Category: Tax
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I was at my bank the other day asking whether or not to

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I was at my bank the other day asking whether or not to declare a small amount I inherited recently from my mother in Switzerland.. I have no intention of bringing the money into the UK, and up till now the UK authorities would not have been any the wiser about it. But since from the next tax year the Swiss banks have to declare monies of UK residents lying in their accounts to the UK tax authorities, I asked my bank whether and how to declare it.No satisfactory answer was given.When I then wanted to invest spare UK money in a cash ISA, the bank adviser said she could only do that if I gave her my TIN number. I have no such number, am not an US citizen but have dual nationality UK/Swiss. where do I stand on this?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
The bank adviser is talking twaddle and you should report her incompetence and ignorance to the Manager. A TIN, as you are clearly aware, is an USA IRS reference and utterly irrelevant to your situation.
You are, however, under Swiss Inheritance and Gifts Tax Law, liable for any Swiss Inheritance Tax due on the inheritance from your mother. Thereafter there is no UK liability on an inheritance save where it is deposited when any interest earned is subject to UK Income Tax (IT) as you are liable for IT on your world wide income if you spend more than 183 days in the UK in any one tax year. Thus if you are earning interest on the account then you must declare it on your annual self assessment tax return. Any tax deducted by the Swiss authorities will, under the Double Taxation Treaty between the UK and Switzerland, which precludes the same income stream being taxed in both jurisdictions, will be allowed as a tax credit against the UK liability. The Treaty does not, however, protect you from differences in rates of taxation. Phew, I bet you are pleased I have finished that panegyric!
I would advise you to get money transferred to the UK and go to another ISA provider and invest using a cheque. I would not be inclined to utiliise the current lack of service being displayed by your bankers.
I do hope that I have shown you a realistic way forward in this matter.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3113
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.
Customer: replied 1 year ago.
Hello Keith,
Thank you for your recent answer. Matters are much clearer now in my mind .IT on interest earned is clear. The Swiss bank deducts that automatically and transfers it to the UK ex-chequer, provided interest is paid out on it in the first place - which is not the case currently due to the strength of the Frank. In Switzerland I also have to pay an extremely low capital tax on it. Is there such a tax in the UK, and if so from which amount would it need to be declared? The taxman has not provided me with a tax return for many years now, so how would I declare the amount if that was required?
Thank you,
Guy
Expert:  bigduckontax replied 1 year ago.
ISAs in the UK are tax free and do not need to be declared.
Customer: replied 12 months ago.
This money is currently in my bank account in Switzerland; it is not invested in an ISA. Bringing it into the UK for just such an investment would - I believe - initially be added to my annual UK income and taxed at the appropriate rates of English IT? Am I correct in this assumption?Tank you, Guy
Expert:  bigduckontax replied 12 months ago.
No Guy; as I originally told you:
You are, however, under Swiss Inheritance and Gifts Tax Law, liable for any Swiss Inheritance Tax due on the inheritance from your mother. Thereafter there is no UK liability on an inheritance save where it is deposited when any interest earned is subject to UK Income Tax (IT) as you are liable for IT on your world wide income if you spend more than 183 days in the UK in any one tax year. Thus if you are earning interest on the account then you must declare it on your annual self assessment tax return. Any tax deducted by the Swiss authorities will, under the Double Taxation Treaty between the UK and Switzerland, which precludes the same income stream being taxed in both jurisdictions, will be allowed as a tax credit against the UK liability. The Treaty does not, however, protect you from differences in rates of taxation.
Bringing these moneys to the UK has no tax consequences until it is say placed in some deposit earning account. However, you should warn your bank of incoming funds and their source to head off any possible money laundering inquiries a large transfer might generate.
Customer: replied 12 months ago.
Thank you.. I never brought this money into the UK for the reason stated in my mail. Now I know better and could bring it into Britain and invest it in, say, a 15k ISA. Thank you KEITH,
GUY.
Expert:  bigduckontax replied 12 months ago.
Certainly, Guy.

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