The Isle of Man signed a Memorandum of Understanding (MOU) with the UK on 19 February 2013. The disclosure facility created by the MOU is based on the Liechtenstein model, allowing UK resident companies and individuals to regularise their UK tax affairs from the 6 April 1999. A fixed rate of penalty will apply, subject to full compliance of the terms of the MOU, and there is scope to have initial anonymous discussions with HMRC before making a formal disclosure.
It is expected that the facility will further enhance the Island’s international reputation as a co-operative and sophisticated offshore jurisdiction.
Jersey and Guernsey have now followed suit and signed their own agreements with the UK which are operative immediately.