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HMRC internal manual

International Manual

Clearance under the agreement: Amounts not cleared: Overview

The maximum value of assets cleared under the agreement is equal to the value of Cr that is used to calculate the amount of the one off charge. Clearance applied as at 31/12/12.

The earliest possible date for establishing the value of Cr is 31/12/10 and only assets held in a relevant account or investment at this date or later would have been eligible for clearance.

This means that, for example, withdrawals from a Swiss bank account made prior to 31/12/10 would not have been cleared. New amounts introduced from a non-UK source after 31/12/10 would have achieved clearance to the extent that their value could be matched to earlier withdrawals although the earlier withdrawals themselves would have remained liable to UK tax because they were different assets.

In certain cases individuals may also have to decide how assets are attributed to the maximum value for which clearance is available.

For example, where withdrawals after 31/12/10 mean that an account balance is lower at 31/12/12 than it was at 31/12/10, then the 31/12/10 balance would have been used to determine Cr, the maximum value for clearance.

If, however, the lower 31/12/12 balance exists despite income and gains having arisen or further deposits having been made in the period since 31/12/10, then the individual would have needed to decide which of the assets featuring in the account at any point in the inclusive period from 31/12/10 to 31/12/12 they wished to treat as cleared, subject to a maximum value equivalent to Cr.

In limited circumstances, it was also possible that Cr would include assets that were not cleared. Where assets were transferred from the UK to a Swiss account in the inclusive period between 06/10/11 and 31/12/12 and Article 9(12)(c) applied, the proportion of any one-off payment that related to these transfers would have been treated as a payment on account of UK tax liability.