Britons to be taxed on secret Swiss billions

Britons with billions of pounds hidden in Switzerland will pay tax at 50% under a deal legitimising their undeclared assets, according to a source familiar with the situation.

The agreement, which is expected to be announced this month, marks a shift in emphasis in the international crackdown on tax havens, the FT reports. Over the past two years, the focus has been on lifting bank secrecy and exposing evaders.

Under the deal, £3bn is expected to be raised over the course of this parliament and investors will also pay a one-off retrospective levy in recognition of past unpaid tax.

The move by the Swiss authorities to "regularise" hidden accounts by taxing them on behalf of the UK government is a sign of the intense pressure they have faced from governments angered by the role of Swiss banks in facilitating evasion.

Some individuals hiding money in Switzerland are expected to consider moving their money after the deal to alternative financial centres including Singapore, Hong Kong, Dubai and the US.