Swiss ac holder? Time running out to disclose

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UK residents with non-disclosed Swiss bank accounts have until the 1st Jan to make a full disclosure to avoid paying massive penalties, up to 150% of tax owed.

Wed, 19 Dec 2012

Time is running out for UK residents who hold a Swiss bank account and have not disclosed it to HMRC. The present tax amnesty runs out at the end of this year. From Jan 1st onwards any undisclosed Swiss bank account holders will have to settle income tax, capital gains tax, inheritance tax and VAT liabilities in relation to the account all in one lump deduction. Higher penalties will be applied and a new withholding tax, with rates comparable to the UK higher rate of tax, shall be applied to income and gains from investments held by UK residents in Swiss accounts. However, this deduction, and the withholding tax, shall not be applied if the account is voluntarily disclosed to HMRC before the year end. Instead, the Revenue will only seek unpaid taxes with relevant interest and penalties. With HMRC warning of tax penalties of up to 150% of the actual amount of tax owing, late disclosure of a Swiss bank account could be very costly to UK taxpayers.For more info click here.