9:54pm UK, Wednesday August 24, 2011
British taxpayers who have money stashed in Swiss banks could see a significant chunk taken by the Treasury after a deal was struck between the two countries.
The Treasury suspects some UK residents have not paid enough tax
Existing account holders could be hit by a one-off deduction of between 19% and 34% in an attempt to settle any tax they owe.
Those who have already declared the full details of where their money is and paid their taxes should be unaffected by the plan, which could raise £5bn for Treasury coffers by 2015.
It is difficult to forecast how much it will bring in over the long term as British depositors in Swiss banks may rearrange their finances in response to the move.
Chancellor George Osborne said the agreement heralded the end of an era when it was "easy to stash the profits of tax evasion in Switzerland".
UK residents with money in Switzerland will also be affected by a new tax deducted at source, which will be 48% on investment income and 27% on gains.
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