24/08/18

HMRC in fresh warning to overseas bank account holders

(BBC) -- HM Revenue & Customs is making a fresh push to persuade non-compliant international taxpayers to come clean ahead of a tougher set of penalties.

When the requirement to correct (RTC) rules come into effect on 30 September 2018 non-compliance can result in a 200% penalty, payable immediately.

The penalties under RTC, have been branded as “a breach of human rights” and designed to trip up honest taxpayers.

HMRC is highlighting the new rules in the wake of revisions to its guidelines.

Information about penalties and other sanctions, ways of making a correction under the RTC rules and information you must supply when making a disclosure that no tax is due have been updated.

The liabilities are income tax, capital gains tax and inheritance tax accrued before 6 April 2017.

Failing to correct the historic tax positions of offshore assets before 30 September can lead to a minimum tax penalty of 100% up to a maximum 200%, plus a 10% asset charge.

The rules coincide with the common reporting standard (CRS), which will see financial data shared automatically between institutions internationally.

Under CRS, details of bank balances, interest, dividends and certain types of income earned by expats will be sent to their home governments wherever they may be.