UK nears agreement with Switzerland

THE UK IS close to agreeing a disclosure agreement with Switzerland, reports have suggested.

Under the deal, UK citizens with Swiss bank accounts will pay a withholding tax and a levy on previously untaxed income, the Sunday Times reported. The Swiss will hand over details of individual bank accounts if HM Revenue & Customs can prove that they have been used to evade taxes.

Negotiations have been ongoing following the agreement with Liechtenstein that provided UK residents with the opportunity to pay a low penalty on previously undeclared taxes and gain immunity from prosecution.

HMRC permanent secretary for tax Dave Hartnett told a group of tax investigation professionals that a deal with Switzerland would be announced in May or June, though reports have suggested this could be as early as the first week of May.

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