We've previously posted items about Requirement to Correct and the need for individuals with undeclared offshore tax liabilities to disclose those liabilities to HMRC before 30 September 2018.  This relates to Income Tax, Capital Gains Tax and Inheritance Tax.

The requirement applies to non-compliance prior to 6 April 2017. We are aware that the Chartered Institute of Taxation has been in discussions with HMRC regarding the scope and operation of the Requirement to Correct legislation.

As a result the scope and operation of the Requirement to Correct (RtC) legislation and as a result of this there may be further changes.

We’ve been advised that HMRC are updating both the RtC and the Disguised Remuneration (DR) settlement terms guidance to explain the position where a taxpayer has not finished the DR settlement process by 30 September 2018.

It’s hoped that HMRC will take the view that DR remuneration settlement will fall within Finance (No2) Act 2017 para 13 (3)(b)(ii) which states:

Offshore tax non-compliance consisting of a failure to notify chargeability may be corrected by:

giving HMRC the relevant information using the digital disclosure service, or any other service provided by HMRC as a means of correcting tax non-compliance 

You might also want to ensure that you or any of your clients that have used tax planning arrangements are aware that there are also some settlements that include liabilities that will be settled by way of ‘voluntary restitution’.

We understand that any amounts that fall within ‘voluntary restitution’ are not liabilities in need of correction at April 2017 – consequently these would be outside the scope of the RtC legislation and no ‘failure to correct’ sanctions can arise in relation to them.

However we can’t confirm this until the updated guidance is published, which we hope will be soon as we are conscious that 30 September is fast approaching.

If you are in any doubt whether you or your clients should make a disclosure under the RtC by 30 September 2018 whether this is due to tax avoidance arrangements or the existence of other offshore accounts do get in touch. There is further information about RtC here.

The 30 September is also a significant date for people  who may be looking to settle past tax planning arrangements if they want to avoid the impact of the 2019 Loan Charge. Get in touch today if you’d like to discuss how we can assist or read earlier blogs on the issue here.

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