The March 2015 Budget brought in many changes, including the announcement that the successful disclosure facilities available by HMRC are soon to close early on 31 December 2015. This will include the more favourable Liechtenstein Disclosure Facility (LDF) as well as the Jersey, Guernsey and Isle of Man disclosures.
These facilities offer non-compliant UK taxpayers, or those who have filed but not included all taxable sources of income and gains on their returns, the ability to bring their worldwide affairs in order without having to undergo an in-depth tax investigation by HMRC as well as benefitting from an agreed penalty position.
As stated above, the ability to use these disclosures will be removed, but an announcement in the March Budget advised that a new disclosure regime will be introduced although the terms will not be as favourable as current schemes.
This comes in alongside the changes to the reporting information HMRC will exchange with other jurisdictions. The introduction of a Common Reporting Standard (CRS) where over 90 countries have signed up to share information in relation to financial information held about taxpayers will come into force from 2017. There will be no restriction in data for non-domiciled individuals as is currently the case under information exchange agreements, and HMRC will be in receipt of a vast amount of data from over 90 countries with the plan to improve international tax compliance.
Further information in relation to the CRS and the disclosure facility will be issued by HMRC and we will publish the mechanics of how this will work when the information is available.
Please contact us if you think you may need to make a disclosure and we will:
- Establish whether you have a tax liability to disclose and are eligible.
- Review your options under the various disclosure facilities and advise of the most beneficial options.
- Act fast; the application needs to be made to HMRC before 31 December 2015.
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