Swiss bank account issue

aroominyork

I have a Swiss bank account (at UBS) which invests in various funds and which is affected by the UK-Swiss bileteral tax agreement coming into force at the beginning of 2013. I am currently liquidating the account and bringing the funds to the UK and I would like to close the account before 31 December.. However about $5000 is in a property fund which is currently frozen and cannot be liquidated. UBS suggested asking my UK financial adviser to take over management of the fund, but he cannot do this. UBS instead suggest donating the fund to a charity in Switzerland - they suggested Red Cross. I might do that but first I would like to know if there is any way to close the account but hang on to this money.

mulronie

"Affected by the bilateral tax agreement"

Ahem. That is to say, you have assets in Switzerland, and you're about to get caught with your pants down when HMRC find out you haven't been paying tax on the income those assets generate.

Not much sympathy from me for your predicament, I'm afraid.

aroominyork

Nope - a (small) inheritence that I want to bring to the UK to keep everything above board. I only found out about the bilateral agreement when calling Switzerland to say I want to close the account. So the question stands (but mulronia may not provide the answer...)

Glen_Clark

Panorama programme on this very subject last week. Secret camera job where a reporter went into a financial services firm who were setting up sham companies with nominee directors to transfer the money to and hide it from the taxman. (cost c£30k on a £6 million cash)
The money would technically be under the control of nominee directors, but they were just paid stooges who did not know where the money was - the financial services firm had rubber stamps of their signatures, so they ultimately owned and controlled your money. :eek:
(This used to be done from the island of Sark (The Sark Lark') but with one guy a nominee director of thousands of companies, the taxman closed it down on Sark, and its moved elsewhere. )
If you want to be sure you can sleep at night the only way is to declare it, and pay the tax.

grey_gym_sock

there is nothing below board about having savings or investments in switzerland, providing you declare your income (and capitlal gains) to HMRC as legally required, and pay any tax due.

if you are doing all that, there is no rush to take money out of switzerland.

k3lvc

Glen_Clark wrote: »

Panorama programme on this very subject last week. Secret camera job where a reporter went into a financial services firm who were setting up sham companies with nominee directors to transfer the money to and hide it from the taxman. (cost c£30k on a £6 million cash)
The money would technically be under the control of nominee directors, but they were just paid stooges who did not know where the money was - the financial services firm had rubber stamps of their signatures, so they ultimately owned and controlled your money. :eek:
(This used to be done from the island of Sark (The Sark Lark') but with one guy a nominee director of thousands of companies, the taxman closed it down on Sark, and its moved elsewhere. )
If you want to be sure you can sleep at night the only way is to declare it, and pay the tax.

And assuming the OP is actually in York then they just need to nip down to Poppleton Park and hang around the row of flash cars parked behind The Beefeater and bunging one of the blokes a roll of £50's might achieve the above (that's always assuming the company hasn't done a bunk since Panorama)

EdGasket

It's cheaper to move abroad and become non-resident. UK is the Pitts for Income Tax, NI, CGT, VAT, IHT and just about every other tax.they can think of. And that is with having had the bonus of North-Sea oil for years. In Hong Kong you pay just 17% tax max (no NI) and that is only after generous allowances and rebates. In the UK it is over 50% for a higher rate taxpayer; appalling.

innovate

aroominyork wrote: »

I have a Swiss bank account (at UBS) which invests in various funds and which is affected by the UK-Swiss bileteral tax agreement coming into force at the beginning of 2013.

You appear to think this affects you negatively. Why? If you have declared your income properly, and continue to do so, you have nothing to fear.

aroominyork

Oh dear, I really have to justify myself here, don't I. Well, if it means I will get some help on the forum I will. I inherited about $80,000 a few months ago. The whole Swiss banking 'system' stinks and I have no wish to be part of it. I do not want to keep this $5k with UBS are have to sign declarations for their files. But if I do not liquidate or move this by 31 Dec I cannot avoid becoming part of their rotten system. I know I have nothing to 'fear', but I just want out. If I have to give the money to a Swiss charity I would rather do that than maintain the account, but I would like a way to keep the funds.

innovate

You started out saying something about a "bileteral tax agreement" that would cause you to move your money out of Switzerland (it wasn't quite clear why the tax agreement would be the trigger to moving your money).

Now you are saying the Swiss banking system stinks (several tens of millions of people might disagree with you there).

So exactly what is your problem?

aroominyork wrote: »

I have a Swiss bank account (at UBS) which invests in various funds and which is affected by the UK-Swiss bileteral tax agreement coming into force at the beginning of 2013.

aroominyork wrote: »

The whole Swiss banking 'system' stinks and I have no wish to be part of it.

ChiefGrasscutter

EdGasket wrote: »

It's cheaper to move abroad and become non-resident. UK is the Pitts for Income Tax, NI, CGT, VAT, IHT and just about every other tax.they can think of. And that is with having had the bonus of North-Sea oil for years. In Hong Kong you pay just 17% tax max (no NI) and that is only after generous allowances and rebates. In the UK it is over 50% for a higher rate taxpayer; appalling.

So perhaps you could explain to us all how those Scandanavian countries with higher tax rates manage to survive as flourishing entities?
One of them even publishes the exact amount of tax paid by each person as public information available for all to see.