Requirement to correct deadline nears
Taxpayers will find themselves facing serious penalties if they haven’t fully declared any income tax, capital gains or inheritance tax liabilities relating to offshore matters by 30 September.
The disclosure requirement covers periods up to 5 April 2017, with the objective of getting taxpayers into a compliant position before new, substantially higher, penalties are introduced from 1 October 2018. It is the failure to correct that will be penalised, not any underdeclaration.
The minimum penalty is 100% of the tax due, and it can be as high as 200%.
Unlike existing penalties, no account will be taken of a taxpayer’s behaviour, so a penalty could apply even if you have taken reasonable care.
The scope of the requirement is wide-ranging and you could be caught if, for example, you live abroad and pay tax outside the UK, but rent out UK property.
