The government has published a group of regulations commencing the latest changes to the offshore penalty regime. Legislation in Finance Bill 2016 increased the minimum penalties for offshore inaccuracies involving ‘deliberate’ and ‘deliberate and concealed’ behaviour by 10% of the potential lost revenue. Taxpayers will be required to provide additional details on how the evasion took place to secure maximum penalty reductions. A new asset-based penalty will apply to evasion using offshore transfers and structures. The naming provisions for deliberate defaulters will be strengthened to protect only those taxpayers who make full unprompted disclosures and extended to individuals who use a company or other entity to evade UK tax.
The Finance Act 2016, Schedule 21 (Appointed Days) Regulations, SI 2017/259, appoint 1 April 2017 as the date on which changes to the offshore penalty regime come into force in relation to offshore transfers. For income tax and CGT purposes, the changes have effect from 6 April 2016, while for IHT they apply to transfers of value made on or after 1 April 2017. Powers for the Treasury to make further regulations defining ‘additional information’ to be provided to HMRC by way of disclosure come into force on 8 March 2017;
The Finance Act 2016, Section 164 (Appointed Day) Regulations, SI 2017/261, appoint 1 April 2017 as the date on which HMRC’s new powers come into force to publish details of deliberate defaulters, where the relevant penalties relate to offshore matters; and
The Finance Act 2016, Schedule 22 (Appointed Days) Regulations, SI 2017/277, appoint 1 April 2017 as the date on which asset-based penalties for serious inaccuracies or failures in relation to offshore matters and transfers come into force. For income tax and CGT purposes, the changes have effect from 6 April 2016, while for IHT they apply to transfers of value made on or after 1 April 2017. Powers for the Treasury to make further regulations setting out the maximum amount of the penalty reduction for disclosure and co-operation come into force on 8 March 2017.
The government has published a group of regulations commencing the latest changes to the offshore penalty regime. Legislation in Finance Bill 2016 increased the minimum penalties for offshore inaccuracies involving ‘deliberate’ and ‘deliberate and concealed’ behaviour by 10% of the potential lost revenue. Taxpayers will be required to provide additional details on how the evasion took place to secure maximum penalty reductions. A new asset-based penalty will apply to evasion using offshore transfers and structures. The naming provisions for deliberate defaulters will be strengthened to protect only those taxpayers who make full unprompted disclosures and extended to individuals who use a company or other entity to evade UK tax.
The Finance Act 2016, Schedule 21 (Appointed Days) Regulations, SI 2017/259, appoint 1 April 2017 as the date on which changes to the offshore penalty regime come into force in relation to offshore transfers. For income tax and CGT purposes, the changes have effect from 6 April 2016, while for IHT they apply to transfers of value made on or after 1 April 2017. Powers for the Treasury to make further regulations defining ‘additional information’ to be provided to HMRC by way of disclosure come into force on 8 March 2017;
The Finance Act 2016, Section 164 (Appointed Day) Regulations, SI 2017/261, appoint 1 April 2017 as the date on which HMRC’s new powers come into force to publish details of deliberate defaulters, where the relevant penalties relate to offshore matters; and
The Finance Act 2016, Schedule 22 (Appointed Days) Regulations, SI 2017/277, appoint 1 April 2017 as the date on which asset-based penalties for serious inaccuracies or failures in relation to offshore matters and transfers come into force. For income tax and CGT purposes, the changes have effect from 6 April 2016, while for IHT they apply to transfers of value made on or after 1 April 2017. Powers for the Treasury to make further regulations setting out the maximum amount of the penalty reduction for disclosure and co-operation come into force on 8 March 2017.
