Swiss account holders could face interest tax charges
Monday 25 October 2010
UK taxpayers with Swiss bank accounts could soon be forced to pay tax on the interest they earn on savings held there, it emerged today.
The Treasury is holding talks with the Swiss government over exchanging information to ensure that people with the accounts pay the right amount of tax.
The Government is asking the Swiss authorities to increase the amount of information they provide to HM Revenue & Customs when it asks for details on accounts held by UK taxpayers, Treasury sources said.
Switzerland has strict laws in place, under which it will not give details on people who have accounts with its banks, unless HMRC can provide a name and say which bank an account is held with.
The law forbids automatic information exchange, under which other countries, such as France and the US, send complete information to HMRC on accounts held by UK taxpayers.
A Treasury source said: "Ministerial negotiations have started between the Swiss and UK Government with the aim that UK residents with Swiss bank accounts pay tax on the interest they earn."
The Treasury is also thought to be asking the Swiss authorities to levy a so-called withholding tax on future interest that is earned on the accounts of UK taxpayers on behalf of HMRC.
The negotiations will also seek to find an agreement on how much tax should be paid on interest that has been earned in previous years.
Treasury sources stressed that the talks were at an early stage, and it is not yet known how much revenue may be raised as a result of them.
Germany is understood to be holding similar negotiations with the Swiss government.
An agreement between the UK and Liechtenstein, which covers a far smaller number of accounts, is expected to raise around £1 billion.
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage on Have I Got News For You: Ukip leader ridiculed over expenses and party 'fruitcakes'
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
- 1 Poveglia: 'World's most haunted island' up for auction...is anyone brave enough to buy it?
- 2 Big Bang Theory to get special Star Wars episode with help from Lucasfilm
- 3 Pharrell Williams 'Happy': British Muslims dance to song in video
- 4 24 people applied for the 'world's toughest job', here are their interviews
- 5 Scientists warn we've hit 'peak beard': The more people grow facial hair, the less attractive it is
iJobs Money & Business
£40000 - £50000 per annum + BONUS + BENEFITS: Harrington Starr: A leading, Cit...
£35000 - £50000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...
£45000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: Corporate Acti...
£350 - £400 per day: Harrington Starr: An opportunity has arisen at a FCA regu...