The UK Treasury has signed an agreement with Switzerland about UK tax evaders.
In these hard-pressed times, HM Treasury is more anxious than ever to collect tax revenue. Its latest effort in this direction has been to reach an agreement (subject to parliamentary approval) with Switzerland concerning funds held in that country by UK taxpayers. The details released so far are that:
- The existing funds of UK taxpayers held in Switzerland will be subject to a one-off deduction of between 19% and 34% to cover past tax liabilities. Those who have already paid the UK taxes due will not be charged.
- A new withholding tax of 48% on investment income and 27% on gains will apply to UK residents with funds in Swiss bank accounts from 2013. To avoid these charges – which closely correspond with the top rates of tax – the investor would have to authorise a full disclosure of their affairs to HMRC.
- In 2013 a new information sharing provision between the two countries will be introduced. The Treasury believes this will make it easier for HMRC to find out about Swiss accounts held by UK taxpayers.
The Swiss deal is a further reminder that, as well as being illegal, tax evasion does not pay. The FSA does not regulate tax advice. Levels and bases of, and reliefs from, tax laws are subject to change.