Taxpayers with offshore interests at risk of 200 per cent penalties - ATT

The Association of Taxation Technicians (ATT) is highlighting the need for taxpayers with undeclared UK tax liabilities relating to offshore interests to settle their affairs by 30 September 2018 or face stiff penalties.

Under the ‘Requirement to correct’ (RTC) legislation currently going through Parliament, taxpayers who were non-compliant in respect of UK income tax, capital gains tax or inheritance tax liabilities relating to offshore interests, income or assets at 5 April 2017 will only have until30 September 2018 to correct their position.

Failure to correct the position by the end of September 2018 will result in penalties of up to 200 per cent of the tax at stake. HMRC will also have the power to publicly name and shame affected taxpayers in certain circumstances.

Yvette Nunn, Co-chair of ATT’s Technical Steering Group, said: “The ATT fully supports the Government’s commitment to tackling offshore tax non-compliance. In the past this has been achieved by HMRC offering the carrot of incentives for those who came forward and brought their tax affairs into order. The RTC represents a change in approach, threatening taxpayers with the stick of large penalties.

“The 30 September 2018 deadline imposed by the RTC means that non-compliant taxpayers have less than a year to correct their position. We would encourage all taxpayers with offshore interests to review their affairs as soon as possible with a view to either satisfying themselves that their UK tax position is up to date or making any necessary disclosure to HMRC. Professional advice should be sought where appropriate.”