How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4087
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I am an Austrian National and tax resident in the UK.As part

Resolved Question:

I am an Austrian National and tax resident in the UK.
As part of my parents inheritance my brother transferred a stocks and shares account in a Swiss company to me. Said Swiss company now tells me that I am liable to pay capital gains and interest tax to the uk government and they want me to authorise this.
Apart from the fact that the account was not in my name until 2013, they want the money for 2010-2013 plus a further future declaration.
Inheritance tax is free of taxes in Austria, I understand that taxes have to be paid on the income of the shares although they have made losses.
Can you please advise me how to deal with this and what to say to the Swiss company?
Many thanks in advance, looking forward to hearing from you
Yours sincerely, ***** *****
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello Helga, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. There is no tax payable on receiving an inheritance under the UK taxation regime. You are liable for UK Capital Gains Tax (CGT) on any gain made between the value as at 2013 and the disposal proceeds. However, you have an Annual Exempt Amount (AEA) of 11.1K to offset this and the balance is taxable at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of disposal. If a loss is the result on disposal then there is no CGT payable and the loss can be carried forward indefinitely to offset losses in the future. Such matters would be declared on your Annual Self Assessment Tax return. If you authorise the Swiss company to undertake this then any over deduction of tax by them would be refunded when you make your Annual Return as explained above. Any income received from the shares would be liable to UK Income Tax, but any tax deducted by Switzerland would, under the Double Taxation Treaty between the UK and Switzerland which precludes the same income stream being taxed in both jurisdictions, be alllowed as a tax credit against any UK liability. The Treaty does not protect you from differences in rates of taxation. I do hope that you find my reply of assistance.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.