At 55, it is possible to take 25% from SIPP Tax Free - from a UK perspective. I live in Switzerland and plan to stay here. Question is, how would Switzerland view that lump sum? Would it be treated as income or as part of global wealth tax? Anyone had any experience with this?
This might be slightly complicated to assess. Look at the double-taxation agreement between CH and UK (if any) to find out under which article SIPP falls. If UK taxes it, CH will not tax again and vice versa. CH however might consider it as part of your global income and increase the tax rate for your CH-based income accordingly (some countries do this, it is somehow not considered double taxation). At the very least you will pay wealth tax on it, which is quite harmless in CH.
Thanks dom.swiss for your input.