HMRC and the Liechtenstein government have published the fourth joint declaration regarding the progress of the LDF and related arrangements. The declaration outlines three developments.
First, the declaration provides for a Single Charge Rate (SCR) of 50% for the 2011/12 and 2012/13 tax years.
Secondly, further circumstances have been outlined excluding certain cases from the full terms normally available under the LDF. The circumstances are:
- where the relevant person enters the LDF to settle liabilities HMRC is already aware of;
- where the issue being disclosed has already been subject to an intervention that started more than three months before the date of application; and
- where there is no substantial connection between the liabilities being disclosed and the offshore asset held by the relevant person as at 1 September 2009.
In such cases the person making the disclosure will not be eligible for the shorter limitation period, the fixed penalty or the composite rate options under the LDF.
Thirdly, the declaration recognises Liechtenstein as a relevant territory for UK charity tax purposes, with the effect that qualifying charities subject to the jurisdiction of courts in Liechtenstein will be able to claim UK tax reliefs.
In addition, HMRC and the Liechtenstein government have committed to discuss the respective rights and duties that may apply after 5 April 2016, when the LDF is currently due to expire.
To access the LDF FAQs click here
To read the fourth joint declaration click here