With HMRC prepared to use the courts and to pay large sums to gain access to your data, the chances of the tax man finding out about your offshore account - whether in Liechtenstein, Switzerland or anywhere else - is now extremely high, and when he does so he is going to come down hard with significant penalties and criminal prosecution a very real possibility.

If you have undeclared UK tax liabilities you have two choices: to wait until your turn comes (and it will come) or to get in first with a disclosure of relevant income and gains.  If you are going to disclose, it clearly makes sense to take advantage of the very generous terms of the Liechtenstein Disclosure Facility.

What is the Liechtenstein Disclosure Facility?

The LDF is the result of an agreement between the UK and Liechtenstein governments aimed at ‘cleaning up’ Liechtenstein’s reputation as a haven for tax evaders.  However, it is open to almost anyone with undeclared tax liabilities associated with offshore assets - those assets do not have to be in Liechtenstein.

Although similar in some respects, the LDF goes a good deal further than previous tax amnesties and, as the first of its kind, it is generous to an extent that is unlikely ever to be repeated.  Key features are:

• A ten year limit: no looking back at periods prior to April 1999.
• Penalties capped at 10% (with no penalty at all in cases of ‘innocent error’).
• Guaranteed immunity from criminal prosecution in return for legitimate full, accurate, and unprompted disclosures.
• Longer deadlines for registration and disclosure.
• A streamlined and assisted process aimed at getting your affairs in order.
• The possibility of payment by instalments if you have trouble paying in full.
• HMRC’s helpdesk of dedicated experts who will provide you with assistance with disclosures on an anonymous basis if desired.
• Available until 31 March 2015.

Is it for real?

Yes.  The LDF has now been running long enough for us to have taken clients right through the process.  The April 1999 cut-off date is a wonderful provision (particularly since so many offshore institutions do not retain records more than ten years old).  The attitude of HMRC – particularly their willingness to discuss problem areas and to compromise where necessary – has taken some getting used to for those accustomed to a rather more confrontational approach.

Taxpayers are clearly benefiting, not just in terms of peace of mind and a clean slate going forward, but from the agreement of tax liabilities considerably lower than they might otherwise have been (savings of up to 75% are quite possible).

Why choose UHY Hacker Young?

Our expert team is ideally placed to assist you.  Over the years we have dealt with the original Offshore Disclosure Facility, the New Disclosure Opportunity and now the Liechtenstein Disclosure Facility.  Our private client services team have a wealth of expertise and will bring to bear their knowledge of personal taxation, trusts and foundations to guide you through the disclosure process as painlessly as possible.

Our fees are directly linked to the time it takes to deal with your disclosure and are modest when compared to our larger competitors.

The next step

Talk to us!  For a free 'no names' discussion of how we can help you, please contact:

 in our London office now, or alternatively get in touch with your local UHY Hacker Young office.

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