< Go Back Last Chance for Existing Offshore Disclosure Opportunities Posted: Sep 3, 2015 The
Liechtenstein and the Channel Isles offshore facilities will close on 31 December 2015. HMRC has announced that these will be replaced by a
much tougher "last chance facility" ahead of the automatic exchange of tax
information with over 90 countries, including tax havens, from 2016.
The Liechtenstein Disclosure Facility may
be used by most people with undisclosed offshore assets. Whilst the
most favourable terms being given to those who have always had
Liechtenstein assets, a potential taxpayer may still acquire a relevant
asset and disclosure undeclared income and gains using the LDF.
The Isle of Man Disclosure Opportunity (which together with Jersey and Guernsey form the Crown Dependencies Opportunity) depend
on a taxpayer having an asset in the Isle of Man (or Channel Islands)
between 6 April 1999 and 31 December 2010. As with the LDF the facility
offers a low penalty rate and potentially no criminal prosecution.
It was announced in the Summer Budget 2015 that existing legislation
is to be amended to require intermediaries, including tax advisers and
financial advisers, to notify their clients that:
The UK will begin to receive information on offshore accounts in
2017 and at the same time will begin to share information with other tax
authorities on accounts held in the UK. This will allow HMRC and other
tax authorities to check that the right amount of tax is being paid on
money held abroad. HMRC is consulting on new criminal sanctions for those who have failed to declare their offshore assets.
Time is running out to take advantage of these opportunities; if you need advice please contact us .