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HMRC internal manual

Double Taxation Relief Manual

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HM Revenue & Customs
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Switzerland: double taxation agreement, Article 27: Miscellaneous rules

(1) Where under any provision of this Convention income from a source within Switzerland is relieved from Swiss tax and, under the laws in force in the United Kingdom, an individual, in respect of such income, is subject to tax by reference to the amount thereof which is remitted to or received in the United Kingdom and not by reference to the full amount thereof, then the relief to be allowed under the Convention in Switzerland shall apply only to so much of the income as is remitted to or received in the United Kingdom.

(2) Where under any provision of the Convention a partnership is entitled, as a resident of Switzerland, to exemption from the United Kingdom tax on any income, such provision shall not be construed as restricting the right of the United Kingdom to charge any member of the partnership which is a resident of the United Kingdom to tax on its share of the income of the partnership; but any such income shall be deemed for the purposes of Article 22 to be income from sources within Switzerland.

(3) Where under any provision of the Convention an estate of a deceased person is entitled, as a resident of Switzerland, to exemption from United Kingdom tax on any income, such provision shall not be construed as requiring the United Kingdom to grant exemption from United Kingdom tax in respect of such part of such income as passes to any heir of such estate who is not a resident of Switzerland and whose share of such income is not subject to Swiss tax either in his hands or in the hands of the estate.

(4) Subject to the provisions of paragraph (6), individuals who are residents of Switzerland shall be entitled to the same personal allowances, reliefs and reductions for the purposes of United Kingdom taxation as British subjects not resident in the United Kingdom.

(5) Subject to the provisions of paragraph (6), individuals who are residents of the United Kingdom shall be entitled to the same personal allowances, reliefs and reductions for the purposes of Swiss tax as Swiss nationals resident in the United Kingdom.

(6) Nothing in the Convention shall entitle an individual who is a resident of a Contracting State and whose income from the other Contracting State consists solely of dividends, interest or royalties (or solely of any combination thereof) to the personal allowances, reliefs and reductions of the kind referred to in paragraphs (4) and (5) for the purposes of taxation in that other State.

(7) Where it is provided in the Convention that relief from tax in respect of any kind of income shall be allowed in the Contracting State from which such income is derived, that provision shall not be construed as requiring that income to be paid without deduction of tax at source at the full rate. Where tax has been deducted at source from such income the taxation authorities of the State in which relief from tax is required to be given shall, when the beneficial owner of the income shows to their satisfaction and within the time limits prescribed in that State that he is entitled to the relief, arrange for the appropriate repayment of tax.

(8) For the purpose of determining what reliefs may be due under Article 10, or paragraphs (4) and (5) of this Article, the income of a partnership shall be regarded as that of its individual members.