HMRC has updated its guidance on the ‘requirement to correct’ offshore non-compliance. Taxpayers must make a disclosure of undeclared liabilities involving offshore matters by 30 September 2018, or face penalties of up to 200% of the tax involved.
HMRC has updated its guidance on the ‘requirement to correct’ offshore non-compliance. Taxpayers must make a disclosure of undeclared liabilities involving offshore matters by 30 September 2018, or face penalties of up to 200% of the tax involved.
The main changes to the guidance include:
removal of the requirement to provide HMRC with specific information about assets held in countries outside the UK and any other persons engaged to hold those assets, when being considered for the maximum penalty reduction (from 200% to 100% of the tax involved);
confirmation that extension of the deadline beyond 30 September in certain circumstances where disclosure is made via HMRC’s contractual disclosure facility (CDF), or during a current enquiry, will depend on full compliance with the CDF process or the enquiry to its conclusion; and
where the taxpayer believes no tax is due, HMRC will not require precise calculations, but only an indication of the amounts involved by reference to four bands (less than £10,000, between £10,000 and £75,000, between £75,000 and £500,000, or more than £500,000).
The requirement to correct applies to income tax, CGT and IHT liabilities involving offshore matters arising before 6 April 2017 (17 November 2017 for IHT).
HMRC has updated its guidance on the ‘requirement to correct’ offshore non-compliance. Taxpayers must make a disclosure of undeclared liabilities involving offshore matters by 30 September 2018, or face penalties of up to 200% of the tax involved.
HMRC has updated its guidance on the ‘requirement to correct’ offshore non-compliance. Taxpayers must make a disclosure of undeclared liabilities involving offshore matters by 30 September 2018, or face penalties of up to 200% of the tax involved.
The main changes to the guidance include:
removal of the requirement to provide HMRC with specific information about assets held in countries outside the UK and any other persons engaged to hold those assets, when being considered for the maximum penalty reduction (from 200% to 100% of the tax involved);
confirmation that extension of the deadline beyond 30 September in certain circumstances where disclosure is made via HMRC’s contractual disclosure facility (CDF), or during a current enquiry, will depend on full compliance with the CDF process or the enquiry to its conclusion; and
where the taxpayer believes no tax is due, HMRC will not require precise calculations, but only an indication of the amounts involved by reference to four bands (less than £10,000, between £10,000 and £75,000, between £75,000 and £500,000, or more than £500,000).
The requirement to correct applies to income tax, CGT and IHT liabilities involving offshore matters arising before 6 April 2017 (17 November 2017 for IHT).
