Hi,
I have a client who after many years living abroad has retired, returned to the UK and become resident again.
He has received a lump sum payment from a Swiss Pension. It is my understanding that this lump sum is exempt from UK tax under Article 18 of the Double tax agreement (unless anyone disagrees?).
He has now been provided with a form from Switzerland titled 'claim to refund the withholding tax on settlements in cash by pension funds with registered office in Switzerland'. The form needs to be 'stamped' by HMRC and then returned to the Swiss authorities. I then believe Swiss tax withheld will be repaid
Does the completion of the form in any way effect the tax status of the lump sum in the UK or is it normal procedure for this to be completed?
All advice appreciated.
Thanks