Overseas Interests - Offshore Tax Liabilities to be declared by 30 September 2018 under new Requirement to Correct (RTC) Rule
If you have any unpaid tax relating to overseas assets, income or activities it is important to disclose this to HMRC before 30 September 2018. HMRC are proposing to impose stricter penalties for the non disclosure from 1 October 2018, (Failure to Correct penalty) with the minimum penalty expected to be 100% of the tax owed, and may be higher depending on the particular circumstances.
The deadline date coincides with the introduction of the Common Reporting Standards, which will see more than 100 countries exchange data on financial accounts, a move which will greatly enhance HMRCs ability to detect offshore tax non compliance.
What income is considered to be an Offshore Tax Liability?
Taxpayers can disclose their income from foreign sources such as holiday home rental income, bank account interest , and dividends under the current Requirement to Correct arrangements, which covers income tax, capital gains tax and inheritance tax.
Anybody unsure of their tax compliance obligations should contact us for further advice.
If you need any assistance in reporting your liabilities, please do not hesitate to contact us as we can liaise with HMRC on your behalf regarding these matters making the process less stressful for you.
Written March 2018.