The HMRC deadline for reporting any previously undeclared offshore income and gains is 30th September 2018.
The Right to Correct (RTC) rule applies to liabilities on all the direct UK taxes, income tax, capital gains tax and inheritance tax. If you are a UK taxpayer and hold assets in another country you should consider whether those assets at any point before 6th April 2017 produced income or gains, and if so make sure that HMRC know about it before the deadline.
UK tax liabilities could arise on:
- cash held in overseas bank or building society accounts;
- investments held overseas, stocks & shares;
- trusts based outside the UK;
- rent from overseas properties – including holiday homes, or any other business activity;
- wages, benefits or royalties earned outside the UK, and many more.
If you have already declared your taxable income and gains to HMRC on your UK Self-Assessment Tax Return then you have nothing to worry about. If not, you could face an investigation, which could result in penalties of up to 200% of the tax liability being charged, on top of the liability itself.
If you’re concerned, now is the time to come forward. You have until 30th September 2018 to notify HMRC of your intention to make a full disclosure of all undeclared tax liabilities before the tougher new penalties are introduced.
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If you require any assistance in relation to personal taxation, please get in touch.