HMRC has published a consultation on:
- the introduction of a requirement for taxpayers to disclose and pay any outstanding tax liabilities relating to offshore interests by 30 September 2018
- a new set of sanctions for those with outstanding tax liabilities who fail to meet this deadline.
The definition of an offshore interest is taken from existing legislation of an offshore matter and an offshore transfer (paragraphs 4A(4) and 4AA(2)-(8), Schedule 24, Finance Act 2007). The scope of the requirements is broad and aims to “compel those with offshore interests who have yet to put their UK tax affairs in order to do so by September 2018”. Following this date the adoption of the Common Reporting Standard by over 100 countries will lead to a significant increase in the amount of information available to HMRC regarding taxpayers and the assets they hold offshore. The consultation includes detailed proposals for the penalty regimes which may operate.
The consultation closes on 19 October 2016.
A copy of the consultation document can be found here.