If you have undisclosed tax liabilities relating to offshore assets which HMRC is not currently investigating under Code of Practice 9, then the Liechtenstein Disclosure Facility (LDF) offers an opportunity to bring your tax affairs up-to-date with reduced penalties. This is in relation to periods up to 5 April 2009.
While the LDF is available until 5 April 2016, it is important to act now as HMRC has started writing to taxpayers they believe have undisclosed assets, and individuals who have received such a letter are not eligible to take part in the LDF. It should also be noted that for periods after 6 April 2009, when the reduced penalty regime does not apply, penalty rates will increase. Since April 2011, maximum penalty rates of 200% can apply in some cases though the LDF rates will remain available to prior years.
For more information, please contact our Tax Investigations & Disputes team.