New UK-Switzerland Tax Agreement Published

Oct. 12, 2011 - PRLog -- The text of the new tax co-operation agreement with Switzerland has now been published and is expected to come into force on 1 January 2013.
The basic rules are as announced in August, but the text gives significant new information on the treatment of non-doms (i.e. individuals who are resident but not domiciled in the UK) who are claiming to be taxed on the remittance basis.

The agreement provides for two withholding tax charges to apply, except where holders of Swiss accounts authorise disclosure of their details to HMRC: a ‘catch-up charge’ on the balance in the account, and an annual charge on the income or gains. Non-doms whose UK tax affairs are in order can ‘opt-out’ of the catch-up charge (and the disclosure alternative), and they can ensure that the annual charge (or disclosure) applies only to UK income and gains, or other amounts remitted to the UK. However, they will have to comply with certification procedures to establish their non-dom status.

For moew information please visit http://www.moorestephens.co.uk/Nondomconsultation.aspx