HMRC sticks by offshore disclosure ‘nudge’ letters

HMRC has confirmed it will not be extending the 30-day deadline contained in ‘nudge’ letters sent to taxpayers, inviting them to disclose details of their offshore assets, income and gains. However, HMRC has told the CIOT it will take a ‘reasonable and proportionate’ approach to requests from taxpayers for more time to gather information.

The CIOT asked whether HMRC would consider extending the deadline for disclosures in view of the coronavirus outbreak. Letters sent out in February invited taxpayers to make a disclosure and complete a ‘certificate of tax position’ within 30 days. These individuals were identified from the data HMRC has received from overseas tax authorities under automatic exchange of information provisions such as FATCA, CRS, CDOT or DAC.

The CIOT published guidance in March on how to respond to these letters, which included replying in writing to HMRC, rather than signing and returning the ‘certificate of tax position’. HMRC has confirmed to the CIOT that there is no legal obligation on individuals to complete the certificate.