Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

Britain and Switzerland sign tax agreement

Share this article

Britain and Switzerland sign tax agreement
16:48 CEST+02:00

Britain and Switzerland signed an agreement on Thursday which will allow the taxing of previously hidden funds held by Britons in Swiss bank accounts.

Swiss Finance Minister Eveline Widmer-Schlumpf and a British Treasury minister, David Gauke, inked the accord in London, their ministries said.

Under the deal, British residents can retrospectively tax their existing banking relationships in Switzerland either by making a one-off tax payment or by disclosing their accounts.

When the accord was struck in August, Switzerland said investment income and capital gains arising from previously undisclosed assets held by British residents would be covered by a final withholding tax, at a rate of between 27 and 48 percent.

The agreement comes into force in 2013.

Switzerland said in a statement the deal "satisfies the interests and requirements of both countries equally well".

The agreement between Switzerland and Britain is broadly similar to one that Swiss authorities signed with Germany last month.

Estimates in Britain put the amount of funds hidden by British residents in Switzerland at £125 billion ($192 billion).

Get notified about breaking news on The Local

Share this article

The Local is not responsible for content posted by users.
Become a Member or sign-in to leave a comment.

From our sponsors

Why Europe's top talent still flocks to London

London has always had a certain allure that pulls in entrepreneurs from near and far. As one of the world's most connected cities, a top financial centre and a multicultural melting pot, countless professionals from Europe and beyond are drawn to London like moths to a flame.