The UK Swiss Tax Agreement comes into force on 1st January 2013. It affects individuals with a UK address holding a Swiss bank account, or investments in Switzerland.
The terms of the Agreement will require the Swiss bank where the account is held, to apply a one-off levy on 31st May 2013. The levy will apply unless the bank receives confirmation from a UK tax professional that an account, and any income and capital gains arising has been disclosed to HM Revenue & Customs (HMRC), or if the account is closed beforehand.
Swiss banks are currently sending letters to account holders to ask what they intend to do with their account. The choices are to either:
- Pay the levy of between 21% and 41% of the assets under management at 31st December 2010
- Give permission to their bank to provide details to HMRC; or
- Close the account.
These letters should not be ignored. Account holders need to make an early decision, as your bank will automatically deduct the levy if you take no action.
If this applies to you and you would like more information please contact us.