In the ongoing fight against offshore evasion, the Government has ratified (in principle) an agreement with Switzerland to tackle offshore tax evasion.
Under the agreement, existing funds held by UK taxpayers in Switzerland will be subject to a significant one-off deduction of between 19% and 34% to settle past (outstanding) tax liabilities. The new charges will not apply if the taxpayer authorises a full disclosure of their affairs to HMRC.
Let's face it, this seems quite a generous deal when considering interest and penalties, so as and ex-inspector I have little sympathy!
From 2013, a new withholding tax of 48% on investment income and 27% on gains will ensure the effective future taxation of UK residents with funds in Swiss bank accounts. This will be accompanied by new information-sharing rules which will make it easier for HMRC to find out about Swiss accounts held by UK taxpayers.
To read more, please click here.