Two new opportunities to resolve your outstanding tax affairs
January 6th 2010
New Disclosure Opportunity and Liechtenstein Disclosure Facility
Offshore account holders in the UK and those with accounts in Liechtenstein have one final opportunity to put their tax affairs in order. Recent announcements by HMRC have confirmed two amnesty opportunities.
The New Disclosure Opportunity
The New Disclosure Opportunity (NDO) enables UK taxpayers with offshore accounts to voluntarily disclose previously undeclared tax to HM Revenue & Customs.
If tax, interest and a reduced penalty are settled by 12 March 2010, HMRC are likely to accept the figures and move on. Otherwise HMRC may pursue an investigation and in a few cases individuals may risk prosecution.
Time is limited to take action - an NDO notification of the intention to disclose had to be made to HMRC between 1 September and 4 January 2010.
Then participants must make the full disclosure and payment by 31 January 2010 if on paper and 12 March 2010 if online.
The Liechtenstein Disclosure Facility
A special tax amnesty - the Liechtenstein Disclosure Facility (LDF) - for UK residents with funds in Liechtenstein has been announced by HMRC.
UK taxpayers will avoid a criminal prosecution if a complete and voluntary disclosure is made - the only exception to this being if the source of funds is criminal property. However, those already under investigation by HMRC will not be able to take advantage of the LDF.
Also the LDF will only seek to collect tax for ten years as against twenty under the NDO and the penalty will be restricted to 10% with some exceptions.
The LDF runs from 1 September 2009 until 31 March 2015. New agreements between the UK and Liechtenstein means that there will be a five-year compliance programme, after which it is expected that no UK residents will use Liechtenstein to evade UK tax.
How can EDF tax help?
Our Head of Tax Investigations had considerable experience and success during the 2007 Offshore Disclosure Facility. We can help you now.
It is time for you to act now. For professional, confidential and specialist advice on your next steps call Iain Macleod at EDF Tax LLP on 07920 146800, or email imacleod@edftax.co.uk or complete our enquiry form.
