End Of Days For The Offshore Disclosure Facility
IT’S NOT TOO LATE TO MAKE YOUR OFFSHORE DISCLOSURE!
HMRC have been operating a variety of disclosure facilities to allow individuals the opportunity to come clean and own up to previously non-disclosed non-UK assets. This facility is about to come to an end on 31 December 2015.
After this date over 90 countries have agreed to new international exchange of financial information agreements that will allow HMRC to know about overseas accounts held by you. If all taxable income and gains have been declared then no problem. If however, this is not the case and HMRC find out there could be a penalty of up to double the tax owed or even prison.
From 2016, the UK will receive details of financial information from 1 July 2014 for personal bank accounts, trusts, companies and other structures where there is a UK beneficial owner, beneficiary or settlor involved.
You still have time to make your disclosure
Until 31 December 2015 there are still 4 disclosure facilities available to you:
THE LIECHTENSTEIN DISCLOSURE FACILITY (LDF)
This facility is open to anyone who owned an offshore asset on 1 September 2009 and at the time that you register to use the LDF owned an asset in Liechtenstein. It does not matter when you acquired the asset in Liechtenstein, so long as you owned it when you registered for the LDF.
THE 3 BRITISH CROWN DEPENDENCIES FACILITIES
- Isle of Man
The British Crown dependencies disclosure facility will allow UK taxpayers the opportunity to disclose worldwide income and put their tax affairs in order whilst limiting an extensive tax investigation and the possibility of a very large tax bill at the end.
If you believe you have an outstanding tax liability and you are eligible you will be allowed to limit your disclosure to tax periods ending on or after 6 April 1999 (1 April for companies) and to restrict any penalties to within set limits.
No more being a mushroom!
If you believe you have any old financial tax arrangements, for example a trust set up outside the UK or out of date tax advice and your circumstances have changed, stop being a mushroom and sitting in the dark, seek professional advice on the way forward or you could run out of time.
It is in your interests to resolve these issues through a disclosure facility than wait for HMRC to knock on your door!