I’m moving to UK for a few years for a lucrative finance job and want to optimally plan my exit from Switzerland and UK/CH taxes to save money.
As we all know, Switzerland doesn’t tax capital gains, which is very nice for savers. But most countries in the world do and UK is no exception. However, they have this concept of domiciled and non-domiciled residents. People without strong ties to UK (especially for whatever reason, having a non-UK father counts a lot) and not planning to stay in the UK indefinitely can elect to declare themself non-domiciled. That gives the option to be taxed on remittance basis: instead of being taxed on worldwide income and capital gains, they are taxed only on UK income/gains and the part of foreign income/gains remitted into the UK.
I’d like to take advantage of this favorable remittance-basis taxation scheme. Does anyone have experience with it? How difficult is it to manage and what are the gotchas?
I have accounts at Interactive Brokers and Schwab, formally both with their UK entities - is the money in them considered to be remitted into the UK? IB claims to hold customer assets with their US entity, so hopefully not, but on the other hand when depositing CHF they ask to wire it into their UK bank account - would this be a remittance event? Also should I avoid buying UK stocks and funds at IB to avoid remittance problems?
Another question I have is about pillar 2 withdrawal. I’ll move my pillar 2 to Schwyz before leaving and have it cashed out when I’m in the UK. How is the withdrawal taxed from UK perspective?
Thanks for any replies!