Tick tock – as HMRC warn it is time to declare offshore assets
03 August 2018
New legislation called ‘Requirement to Correct’ requires UK taxpayers to notify HMRC about any offshore tax liabilities relating to UK income tax, capital gains tax, or inheritance tax.
It is possible that some UK taxpayers may not realise they have a requirement to declare their overseas financial interests and actions such as renting out a property abroad, transferring income and assets from one country to another, or even renting out a UK property when living abroad could result in taxpayers occurring tax bill in the UK.
The financial secretary to the treasury, Mel Stride MP, said:
“Since 2010 we have secured over £2.8bn for our vital public services by tackling offshore tax evaders, and we will continue to relentlessly crack down on those not playing by the rules.
This new measure will place higher penalties on those who do not contact HMRC and ensure their offshore tax liabilities are correct. I urge anyone affected to get in touch with HMRC now.”
Common Reporting Standard (CRS)
From 1 October more than 100 countries, including the UK, will be able to exchange data on financial accounts under the CRS. CRS data will significantly enhance HMRC’s ability to detect offshore non-compliance and it is in taxpayers’ interests to correct any non-compliance before that data is received.
Tax liabilities can be corrected by:
- Using HMRC’s digital disclosure service as part of the Worldwide Disclosure Facility or any other service provided by HMRC as a means of correcting tax non-compliance
- Telling an officer of HMRC, in the course of an enquiry into a taxpayers affairs
- Or using any other method agreed with HMRC
If taxpayers are confident that their tax affairs are in order, no further action is needed however if anyone is unsure, HMRC recommends they seek advice from a professional tax adviser or agent.