19 Dec Uk Swiss Agreement Non Dom
If you have assets in a Swiss bank account and the income or profits generated in that account have not been reported to HM Revenue Customs (HMRC), you are probably affected by the agreement. Even if you have indicated the income and profits of your Swiss bank account, you may also be affected. The agreement introduces a change in the way banking is conducted in Switzerland, and further advice should be taken regarding your particular circumstances. Account holders who do not act (see below) have collected their Swiss bank accounts, even though HMRC`s income and profits have been reported. The agreement will allow HMRC to obtain information on the designated persons, which is an extension of the current position. As far as I know, the Swiss Bankers Association (SBA) says the agreement only applies to uk residents. I have a home in the UK and other countries. Do I live within the meaning of the Swiss agreement? On 6 October 2011, the United Kingdom and Switzerland signed and published the text of their tax agreement for UK residents with accounts in Switzerland (the “agreement”). The publication of the agreement is good news, as it provides a welcome clarification on a number of issues that (as noted in our previous Stop Press of 13 September 2011) were not clear from the previously published information.
On the other hand, it also confirmed that the agreement had some important restrictions. The United Kingdom has concluded a series of bilateral tax cooperation agreements through the exchange of information. HMRC has reached an agreement with the Swiss tax authorities. The agreement allows for close cooperation between the UK and Switzerland, and there is an important exchange of information between the two countries. The agreement provides for a historic tax on Swiss funds held by residents in the UK, up to 34% of the balance in an account as of 31 December 2010 or 31 December 2012. UK residents with Swiss accounts may also be subject to a WHT of up to 48% on their accounts. With regard to inheritance tax, Swiss payers are required to withhold 40% tax or to file a declaration if a person dies, as well as other measures. The agreement enters into force on January 1, 2013. The single tax will be deducted from the Swiss bank accounts concerned on 31 May 2013. HMRC confirmed, in its frequently asked questions about the agreement, that it will be possible to pay the single debit on one account, but to disclose another account, provided the two accounts are separated. It is confirmed that sub-accounts are processed automatically in the same way as the main account.
Any British person with a bank account, trust or business in Switzerland is affected by the agreement. Swiss banks will check their records to identify these individuals. If banks do not have up-to-date information about their customers, account holders can be contacted if they do not meet the relevant criteria. They should go to the bank to avoid the single tax suffering, as mentioned above. As part of the agreement, it will be easier for HMRC to obtain information about a designated person. HMRC will be able to obtain bank data from 500 designated persons per year (for the first three years, this figure will be reviewed annually from the beginning of 2016). This information will be used to prosecute fraudsters. Whether you live in the UK tax depends on a number of factors, not just where you can have a home. If in doubt, we can provide you with specialized advice. However, the SBA issued a statement confirming that the agreement concerns “British taxpayers.” For this purpose, you should use “British” as “UK.” If your bank writes to you and you don`t think you should be included (for example. B you do not consider yourself to be resident in the UK), you should not ignore the letter (otherwise your account will be subject to the single tax).
The agreement allows HMRC to request information from Switzerland on up to 500 designated subjects per year (for the first three years,