Decision time for Swiss account holders
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14 November 2012 - HM Revenue
UK residents with Swiss bank accounts are to be warned that
new landmark taxation arrangements are scheduled to come into force on
1 January next year.
The new tax agreement between the UK and Switzerland means
that account holders must either provide full details to HM Revenue
& Customs (HMRC) or pay over a proportion of the money in their
account and a future withholding tax.
Exchequer Secretary David Gauke said:
“The days of hiding money in Switzerland in order to evade tax are
over. Burying your head in the sand is no longer an option. The only
realistic strategy is to talk to HMRC, as quickly as possible.”
Jennie Granger, HMRC Director General, Enforcement and Compliance, said:
“Swiss banks or accountants are writing to people affected by the
agreement. Some may be asking customers to close their accounts. If
this happens, UK residents must ensure that any outstanding tax
liabilities are paid. Anyone in these circumstances is strongly advised
to contact HMRC as soon as possible.”
1. The agreement was negotiated in 2011 and HMRC has recently published
As well as explaining the options available under the agreement, the
factsheet provides details of the other ways in which people can ensure
that their tax affairs are brought up to date. It includes contact
details for those who want to make a direct disclosure to HMRC.
2. The agreement includes a withholding tax to deal with the tax on
income and gains. Rates currently range from 27 per cent on capital
gains up to a maximum of 48 per cent for interest or other non-dividend
income. Where the payment option is chosen, any past liability to
specified taxes will be dealt with by paying a one-off charge of up to
41 per cent of the total value of the account.
Account holders should contact:
HM Revenue and Customs
Offshore Coordination Unit
City Centre House
Email contact: firstname.lastname@example.org
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Article Published/Sorted/Amended on Scopulus 2012-11-23 09:05:30 in Tax Articles