TaxPersonal TaxSwiss agreement “to create 50% withholding tax”

Swiss agreement "to create 50% withholding tax"

Agreement struck with Switzerland means Britons will pay witholding levy

BRITONS WITH MONEY hidden in Swiss bank accounts will be subject to a 50% withholding tax, reports have suggested.

The Financial Times reports that a “source close to the negotiations” has said that the 50% levy has been agreed with Switzerland, which will collect the taxes on behalf of the UK government.

The deal, which will be announced in the next month, is expected to raise £3bn for the Exchequer. The report said that investors will be required to pay a one-off retrospective levy in recognition of past unpaid tax, though account holders will retain their anonymity under the agreement.

Andrew Watt, managing director at Alvarez & Marsal, told the FT that this agreement would have been unthinkable two years ago. “However inadequate the agreement, even if it is just a small chink of light, it is still astonishing,” he said.

This move has sparked complaints from Liechtenstein, with which the UK has had a longstanding agreement that charges account holders lower-than-normal penalties with immunity from prosecution.

Related Articles

HMRC in tax crackdown on second homes

Personal Tax HMRC in tax crackdown on second homes

5y Calum Fuller, Reporter
HMRC to hand out higher penalties for secret Swiss accounts

Personal Tax HMRC to hand out higher penalties for secret Swiss accounts

6y Calum Fuller, Reporter
Tax amnesties: Big or small?

Personal Tax Tax amnesties: Big or small?

6y Nick Huber, Writer
Advisors want a general tax amnesty

Personal Tax Advisors want a general tax amnesty

6y Kevin Reed, Writer
Tax authority pulls plug on electricians who don’t pay up

Personal Tax Tax authority pulls plug on electricians who don’t pay up

6y Nick Huber, Writer
HMRC targets electricians

Personal Tax HMRC targets electricians

6y Jaimie Kaffash, Writer
Medics must declare tax or face prosecution

Personal Tax Medics must declare tax or face prosecution

6y Jaimie Kaffash, Writer
Swiss deal 'could cost billions'

Personal Tax Swiss deal 'could cost billions'

6y Jaimie Kaffash, Writer