HMRC is urging UK taxpayers to declare foreign income or profits on offshore assets ahead of the 30 September 2018 Requirement to Correct (RTC) disclosure deadline.
The RTC legislation requires taxpayers to inform HMRC about any offshore tax liabilities in relation to income tax, capital gains tax (CGT) or inheritance tax (IHT).
Renting out a property abroad, transferring assets and income from country to country, or renting out a property in the UK whilst living abroad may result in taxpayers receiving a significant tax bill in the UK.
HMRC has stated that, under the Common Reporting Standard (CRS) initiative, from 1 October 2018 over 100 countries will be able to exchange data relating to taxpayers’ financial accounts. HMRC said that the CRS will ‘significantly enhance’ its ability to detect offshore non-compliance. It is urging taxpayers to therefore ensure any non-compliance is corrected before 30 September.
‘Since 2010, we have secured over £2.8 billion for our vital public services by tackling offshore tax evaders, and we will continue to relentlessly crack down on those not playing by the rules,’ said Mel Stride, Financial Secretary to the Treasury.
‘This new measure will place higher penalties on those who do not contact HMRC and ensure their offshore tax liabilities are correct. I urge anyone affected to get in touch with HMRC now.’
Taxpayers can amend their offshore tax liabilities by using HMRC’s digital disclosure service: this can be accessed here.