Talks between the Swiss and UK Governments concerning how to tax undisclosed assets are expected to be finalised in the next month.
The talks are focusing on how:
- existing undeclared Swiss assets should be taxed to ensure the UK resident has regularised their tax affairs for the past; and
- to tax assets at source, going forward, so that the account holder can retain their privacy.
In return, the UK Government is to agree how Swiss banks can undertake business in the UK without a UK branch or subsidiary.
UK residents have the option of voluntarily disclosing their undeclared Swiss assets to HMRC via the Liechtenstein Disclosure Facility (LDF). There are many benefits to making a full disclosure via the LDF, such as repatriation of the undeclared assets to the UK, no tax to pay prior to 6 April 1999 and avoiding IHT charges in certain circumstances.
It is essential that expert specialist advice is sought at an early stage to ensure the most effective solution is identified. Please call John Hood on 020 7182 4747 or your normal Gabelle contact for a free, confidential chat if you have any questions.