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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