Offshore income and assets continue to be targeted by HMRC – anything to declare

As always, UK tax residents must declare their worldwide income and gains—including interest arising from offshore bank accounts—through their annual Self Assessment tax returns or they must correct past omissions via the HMRC Worldwide Disclosure Facility.

It is not ‘scare mongering’ in any sense of the word to say that making such a disclosure using the Worldwide Disclosure Facility is an exposing and sometimes stressful matter and it is always recommended that you use a professional widely experienced in making such disclosures.

This is something we can do in a very friendly and approachable manner ensuring that conversations take place to make sure such a disclosure is comprehensive and leaves ‘no stone unturned’. There’s only one chance to make that disclosure and it must be correct and complete. The penalties are not simple to compute, but there are benefits in using this facility and we have vast experience in it.

HMRC can and do check the existence of offshore bank account through international data agreements and their enhanced the computer matching facilities. They do not have full information to hand for every foreign account and every penny held in them, but they do receive a huge amount of financial data from more than 100 countries and we have seen enquiries open into countries you would never believe pass information to HMRC . This type of exchange of information is not likely to diminish in the coming years. If you think you owe tax due to some asset or bank account held abroad, give us a ring to see if any taxes at stake and we can help you.

HMRC believe that a vast amount of people still have undeclared offshore financial interests and the taxation of such interest can be complex.

Even if you believe your bank account and the funds therein arise from a simple matter, like a house sale for example, it is still worth a chat to see whether HMRC would be interested. HMRC are hanging on to a lot of information which takes them an inordinate amount of time to sift through with the staff available. But they are in no hurry as they can go back 20 years once your name comes to the top of their list.

It is to be noted that there is no deminimus limit for making a return of any offshore income or gains so ‘the sooner the better’ is the maxim – for us to check your situation and a call to us costs nothing for the initial call.

Call Andy on 07879 464577

Alex on 07538 418839

Lindsay on 07584 706664

Or email her on Lindsay@lhtax.co.uk