LDF and Swiss-UK Tax Agreement
yer informed his client about the possibilities of the LDF and recommended clearing up the tax situa-
tion. Mr Thomson agreed, a bank account in Liechtenstein was opened and a sufficient amount was
transferred in order to receive the certificate of relevance.
The case has the following parameters:
Table 6 Case 2 parameter
Year account balance | interest and gains
1979 GBP 800,000
1986 GBP 1052,745 GBP 252,745
1992 GBP 1,408,811 GBP 356,065
1999 GBP 2,636,675 GBP 140,881
2000 GBP 2,188,441 -GBP 448,235
2002 GBP 2,275,978 GBP 87,538
Payout 2004 | GBP 2,175,978 -GBP 100,000
2009 GBP 2,795,032 GBP 719,054
2010 GBP 2,864,908 GBP 69,876
2011 GBP 2,979,504 GBP 114,596
2012 GBP 3,128,479 GBP 148,975
The expected tax burden would be as follows:
Table 7 Case 2 calculation
Taxes Normal Taxation LDF LDF CRO
IHT on death 40% GBP 392,698
IHT on transfer 20% GBP 267,562
IHT 10 year charge 6% GBP 127,046 | 6% GBP 131,306
IHT exit charges 6% GBP 6,000 | 6% GBP 6,000
Income & gains 35.5% GBP 385,879
1992 - 1998
Income & gains 35.5% GBP 106,229 | 35.5% GBP 106,229 | 40% GBP 106,229
1999 - 2009
Income & gains 2010 | 35.5% GBP 24,806 | 35.5% GBP 24,806 | 35.5% GBP 24,806
Income & gains 2011 35.5% GBP 40,682 | 35.5% GBP 40,682 | 50% GBP 57,298
Income & gains 2012 | 35.5% GBP 52,866 | 35.5% GBP 52,866 | 50% GBP 74,488
Late payment interest | 8.5% GBP 51:891] | 8.596 GBP 21,511 | 8.5% GBP 22,340
rate
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