UK Swiss Tax Deal

26-Aug-2011 The UK and Swiss governments have struck a deal as part of HMRC’s latest efforts to track down money hidden in offshore bank accounts.

Robert Levy, Executive Partner of Manchester law firm Kuits Solicitors, who specialises in advising clients with offshore disclosure issues, commented, “The UK Swiss tax deal is a game changer for UK residents with undisclosed Swiss money. Doing nothing is no longer an option.”

The UK Swiss deal is a landmark in HMRC's attempt to tax undisclosed assets which in many cases have been held in Switzerland for generations. In 2009, HMRC promoted the disclosure of assets through the Liechtenstein Disclosure facility (LDF).

Robert, who has advised over 60 individuals through the LDF explains, “Where people have had money offshore for a considerable period of time, we still expect the amnesty provided by HMRC's Liechtenstein Disclosure Facility to be a better and more cost effective option.”

ENDS

Notes to Editors

HMRC has signed an agreement with the Swiss government to target UK residents with undisclosed Swiss bank accounts in an effort to recover unpaid tax accountable to the UK.

For the first time, from May 2013, the Swiss government will tax money held by UK residents in Swiss banks. However, the identity of individual account holders will not be revealed to HMRC.

One off levies will be applied to the total balances held in Swiss accounts. In addition, account holders will also face being taxed on the income generated from the accounts going forward. Charges will not apply to account holders who authorise disclosure of their Swiss accounts to HMRC.

Since 2007, UK residents who have avoided paying tax through offshore bank accounts have been a target for HMRC. The Liechtenstein Disclosure Facility (LDF) was established in 2009 as a mechanism for UK taxpayers with undisclosed offshore assets to make voluntary disclosure and to turn black money into white.

For more information contact Robert Levy or Graham Wood

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