Heather Taylor outlines the pitfalls
of a new tax disclosure agreement between the UK and Switzerland
In October 2010, the UK and Swiss authorities confirmed they
had entered into formal discussions concerning tax payments on deposits
held by UK residents in Swiss banks.
There have been many rumours and public comments by tax professionals
on the likely format of the Swiss agreement when it emerges, probably
over the summer, with most informed opinion expecting a withholding
tax of somewhere between 25% and 35% of arising income, much lower
than the current UK top rate of tax of 50%. It is understood that
Swiss banks acting for British customers will deduct the withholding
tax and send it by bank electronic transfer direct to the UK Treasury.
