aim key cog flag clipboard-pencil podium flare signal lamp pie-chart graph scale2 hammer2 balance traffic-lights road archery wall share2 warning notification-circle circle-minus prohibited book book2 bookmark

Call your nearest office

Or ask us a question

Search our site

What are you looking for?

What was the UK/Swiss Tax Agreement?

Facing a tax investigation? Need to make a disclosure to HMRC? Don’t worry. One of our team will be able to help. Just get in touch.

UK/Swiss Tax Agreement options

For any UK taxpayer who held an undeclared Swiss bank account, the UK/Swiss Tax Agreement provided a mechanism to regularise a taxpayer’s past tax liabilities.  A one-off withholding tax based on the account balance as at 31 December 2010 will have been deducted for the past and a separate withholding tax was levied going forward.

When did it come into force?

The Agreement between the UK and the Swiss Confederation on cooperation in the area of taxation came into force on 1 January 2013 and the one-off withholding tax will have been deducted from accounts on 31 May 2013. The agreement terminated on 31 December 2016.

What happened next?

For those that opted to have the withholding tax deducted in 2013, there were two choices going forwards:

  • To allow all future income and gains to be subject to an annual withholding tax deduction at the rates detailed below.
  • Choosing to make a disclosure to HM Revenue & Customs, thereby preventing further withholding tax deductions.

How much is the withholding tax?

Various rates of tax applied depending upon the nature of the asset and income/gains generated.

The initial minimum rate was 19% which increased to 21% on 18 April 2012. The highest rate was 41% depending upon the type of asset.

From 1 January 2013 48% applied to interest, 40% dividends and 27% to capital gains.

What were the benefits of withholding tax?

The account holder could remain anonymous.

What is the current position?

From 1 January 2017 UK taxpayers were no longer able to prevent their information being shared with HMRC by paying a withholding tax. They should therefore have ensured that their tax affairs are up to date before HMRC commenced an enquiry resulting in higher penalties than if the income had been disclosed voluntarily.

Making a disclosure

Several disclosure facilities were previously available which have now been closed. The good news is that until 30 September 2018 there is still time to make a disclosure using the Worldwide Disclosure facility (WDF).

If you wish to discuss this or any other matter with a member of the team, please contact us.

 

If you cannot find the information you need on our website, please contact Paul Malin or Andy Maxfield using our contact form or email directly to pmalin@hwca.com or amaxfield@hwca.com

Get in touch

Whatever issue or question you have, we’ve got the answer.
If you want to get in
touch then please complete our form.

Birmingham

Haines Watts Birmingham
Sterling House
71 Francis Road
Edgbaston
Birmingham
B16 8SP

Leeds

Haines Watts Leeds
Sterling House
1 Sheepscar Court
Meanwood Road
Leeds
LS7 2BB

London

Haines Watts London
New Derwent House
69 – 73 Theobalds Road
London
WC1X 8TA

Our addresses

Birmingham

Haines Watts Birmingham
Sterling House
71 Francis Road
Edgbaston
Birmingham
B16 8SP

Tel: 0121 456 1613

Leeds

Haines Watts Leeds
Sterling House
1 Sheepscar Court
Meanwood Road
Leeds
LS7 2BB

Tel: 0113 3981100

London

Haines Watts London
New Derwent House
69 – 73 Theobalds Road
London
WC1X 8TA

Tel: 0207 025 4650