Market leading insight for tax experts
View online issue

Swiss tax deal nets UK £1bn

printer Mail

Swiss banks will collect far less in tax from UK account holders than the £3.2bn predicted by the Office for Budget Responsibility (OBR), according to The Times. The tax deal allows UK citizens to pay a one-off levy and regular withholding tax to their Swiss bank. Estimates put the figure closer to £1bn, but the Treasury says HMRC is still on track to recoup its original estimate of £5.3bn over six years.

The government had logged the £3.2bn payment in its May accounts despite the fact the money had not been received. The Swiss Bankers Association claims there are fewer untaxed accounts than the OBR had assumed. As a result of the miscalculation, May’s net borrowing figure will be revised up by the Office for National Statistics.