Have you heard about the agreement between Swiss banks and the UK Government signed in August of last year?
Are you concerned about any funds you hold in an undisclosed Swiss bank account potentially coming to light?
HM Revenue & Customs (HMRC) has made an agreement with the Swiss tax authorities with a view to ensuring that UK residents with funds invested in undisclosed Swiss bank accounts pay tax on those funds in the UK.
In 2013 a one off levy of between 21% and 41% of the balance is due to be applied to Swiss accounts held on 31 December 2010 that remain open on 31 May 2013.
From 2013 onwards, a rate of 48% withholding tax will then be applied to investment income, 40% on dividend income and 27% on gains received in the account going forward. The charges can be avoided through the disclosure to HMRC of the account, together with the payment of associated taxes.
HMRC has already been contacting customers of HSBC Geneva regarding information it has received under a tax treaty.
Does 'wait and see' remain a viable option? A decision will now have to be made. Would you be better off under this new Swiss agreement or the Liechtenstein Disclosure Facility (LDF)? Most UK resident taxpayers with offshore accounts can still take advantage of the LDF which offers a restricted disclosure period for undeclared taxes and reduced penalties.
You can disclose more complex matters to HMRC under the Code of Practice 9 route and still receive favourable terms and avoid prosecution.
If you need to talk about your Swiss bank account with a tax investigations specialist, contact us for a free, no obligation consultation on 0845 868 2050.