HMRC gets £342m in Swiss-UK tax deal

 

HMRC has received £342m from Switzerland as a result of the Swiss-UK tax deal which came into force on 1 January. 

This payment is being made by Swiss banks in advance of the one-off charge being levied on their customers.

Under the deal, the Swiss are taxing the bank accounts of UK citizens and transferring the money directly to the Treasury without revealing the identity of account holders. 

The £342m is just the first instalment, however the Revenue is expecting the deal to add £5bn of previously unpaid tax to their coffers. 

Current and future tax liabilities in Swiss accounts will be covered by a new withholding tax of 48% of income.

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Comments
Belarieq's picture

The end of an era

Belarieq | | Permalink

Is this the end of the Swiss Bank Account being a synonym for illegal deposit? Next you're telling me they're joining the EU.

Now let's follow the example of Norway and others, and invest it    1 thanks

mikewhit | | Permalink

This represents tax previously denied to the Treasury. It should not go into paying off debts in a 1:1 ratio, if it was invested in sensible projects it could get a better return.

Even restoring the BBC World Service funding might do a fair bit of good for the country in terms of 'soft power'.

The trouble is that all the Govt. thinks of is its pet ideological projects rather proper infrastructure (in which I include education+training) funding.

Meanwhile in a southern Swiss bank branch ...

mikewhit | | Permalink

"Ah, Herr Green, how may I help you .... ah, you are here to question this month's CHF 342m bank charges, I see. Let me get the manager ..."