Tax on Income and Assets Abroad

HMRC have recently sent out notifications regarding tax on income and assets abroad. They want taxpayers to be aware that tax authorities  are sharing a range of data on financial accounts, and will be using that data to check that all income has been properly declared.  HMRC is receiving an unprecedented amount of information about  overseas accounts, structures, trusts, and investments from more than 100 countries, thanks to agreements to increase global tax transparency. This gives HMRC unprecedented levels of information to check that, as in most cases, the right tax has been paid. Here is what they say …

HM Revenue and Customs (HMRC) is getting tougher on those not paying the right amount of tax across their offshore tax affairs.
• From 2016, HMRC is getting new financial information about our customers from more than 100 jurisdictions – including details about overseas accounts, structures, trusts, and investments.
• HMRC is already using information, supplied by overseas banks, insurers, and wealth and assets managers, to identify the minority who are not paying what they owe.
You need to regularly check that you have declared all of your UK tax liabilities and, if needed, bring your tax affairs up-to-date. This is your responsibility. Personal circumstances change. For example, you may have recently inherited assets overseas. Tax laws change too. All of this means that previous advice can be out-of-date, with costly consequences.
• If you are confident that your tax affairs are up-to-date and complete, then you don’t need to do anything further.
• If you are unsure, we recommend that you speak to a tax adviser to find out if you need to take action now.
• If you find that you need to bring your tax affairs up-to-date, it can be easier than you think.
If you have not paid the right amount of tax and choose not to take action now, you need to know that:
• HMRC will find out about your money and assets overseas through new information from more than 100 jurisdictions.
• Penalties are increasing for those who are not paying the right amount of tax on their offshore assets, and you can even face criminal prosecution. Under new rules, you could face further penalties based on the value of the asset as well as the tax due, resulting in potentially life-changing consequences.
and they close with, Come to us before we come for you!

If you think you may need to declare any liability to tax on income and assets abroad or have any questions about your situation, please do get in touch.