Ten things you need to know about the UK-Swiss tax deal
25 August 2011
Salman Shaheen - ITR
The UK government yesterday reached an agreement with Switzerland to tax British citizens hiding their money in the Alpine tax haven. International Tax Review has looked at the peculiarities of the deal and found 10 key points you cannot ignore.
1) British citizens with Swiss accounts will pay the price for tax evasion and it will be steep. Depending on how long they have held their money in Switzerland, 19% to 34% of their funds will be taken by HM Revenue & Customs (HMRC) to settle past liabilities. Switzerland has agreed to an initial upfront payment of SFr500 million (£384 million) to the UK as a gesture of good faith.
2) From 2013, a new withholding tax of 48% on investment income and 27% on gains will apply to UK residents with Swiss accounts. Until now these accounts have seen little to no taxation, but suddenly Switzerland is a much less attractive place for British people seeking to dodge their fair share of taxes.
3) The deal preserves Switzerland’s highly treasured banking secrecy. As a result, a new class of UK tax evader will be...
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