End for the Swiss role?

August 26th, 2011  |  Published in Uncategorized

Under the Swiss-UK tax deal, coming into force in 2013, the Swiss will tax the bank accounts of UK citizens and transfer the money directly to the Treasury, but without revealing the identity of account holders.

A one-off levy of between 19% and 34% will be applied to all Swiss accounts held by UK residents to settle tax liabilities. The rate depends on how long the account has been held. Taxes on future income will be withheld at a rate of 48% per cent, in line with the top 50% income tax rate for Britain’s highest earners.

Taxpayers with money in Swiss accounts have three choices: do nothing and pay the withholding tax in 2013; come clean about undeclared assets by using the Lichtenstein Disclosure Facility, which charges a fixed 10% penalty on undeclared income (significantly lower than normal penalties), and potentially clearing up your tax position and liabilities by 2013, or transfer money to another tax haven.

If you are in this position, get in touch with a financial advisor now, not when a letter from HMRC arrives.

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