The hands of the clock are approaching midnight for UK taxpayers with Swiss bank accounts.<\/p>\n
Under an agreement signed between the UK and Swiss governments, Swiss banks will be required to make a one-off payment to HMRC.\u00a0 The amount of the payment is based on a complicated formula and produces an effective rate of tax of between 21% and 41% of the capital on Swiss bank accounts holding bankable assets (cash and investments\u00a0 – real estate and safety deposit boxes are excluded) where the accounts are registered to a person in the UK. \u00a0\u00a0The deduction applies where the account was open as at 31 December 2010 and is still open as at 31 May 2013.\u00a0 The one-off payment will be made by deduction from the account on 31 May 2013.<\/p>\n
Income earned on these investments from January 2013 will face high withholding taxes at rates of up to 48%.\u00a0 These taxes will be deducted without disclosing the identity of the accountholder to HMRC.<\/p>\n
As an alternative to paying these high tax charges, it is possible to authorise the Swiss bank to disclose the identity of the accountholder.\u00a0 However if tax has not been paid on the income in the past, the accountholder will be exposed to the possibility of an Inland Revenue \u00a0investigation into their affairs which will result in having to pay tax on all undisclosed income and there will also be high penalties, possibly as high as 150%, on the tax liability.\u00a0 In extreme cases the accountholder could be prosecuted by HMRC.<\/p>\n
For non-UK domiciliaries, they can choose to disclose to HMRC UK source income and gains which have been remitted to the UK where UK tax has not been paid and make a one-off payment of 41%.\u00a0 Alternatively they can inform the Swiss bank that they wish to opt out and will not choose any of the options.\u00a0 However this will give no tax clearance for past liabilities.<\/p>\n
The Swiss banks have been sending out letters to accountholders informing them of the options and prompt action is required to respond to these letters.<\/p>\n
Where the income has not been disclosed, it is possible to take advantage of a special disclosure arrangement, known as the Liechtenstein Disclosure Facility (LDF) in order to regularise matters.\u00a0 The advantages of using the LDF are:<\/p>\n
We have considerable experience in using the LDF.<\/p>\n
If you think the LDF could be of benefit to you please contact us.\u00a0 Don\u2019t delay!<\/p>\n","protected":false},"excerpt":{"rendered":"
The hands of the clock are approaching midnight for UK taxpayers with Swiss bank accounts. Under an agreement signed between the UK and Swiss governments, Swiss banks will be required to make a one-off payment to HMRC.\u00a0 The amount of the payment is based on a complicated formula and produces an effective rate of tax[…] <\/p>\n