UK and Switzerland sign tax agreement

THE UK has today signed the tax agreement with Switzerland that will impose a one-off deduction of up to 34% on UK taxpayers’ accounts in Switzerland.

The agreement, which was detailed last month, was signed in London today, HM Revenue & Customs announced. The one-off deduction of between 19% and 34% on the capital in the Swiss accounts was confirmed. There will also be a withholding tax of 48% on investment income and 27% on gains from 2013.

Exchequer secretary David Gauke said: “This is an excellent agreement which tackles a problem many people thought would never be solved.

“Working with the swiss Government we have delivered a highly effective solution which will benefit both countries and recover billions of pounds of unpaid tax for the UK.”

HMRC permanent secretary for tax Dave Hartnett said: “The world is shrinking fast for offshore tax evaders and this agreement will ensure that we know where money that flees Switzerland is heading. We won’t be far behind.”