new disclosure opportunity (NDO)

NLHM Revenue & Customs (HMRC) have applied for permission to serve disclosure notices on more than 300 Financial Institutions in the UK. The disclosure notice will require the Institution to furnish HMRC with details of all offshore accounts in existence in the last 6 years where the account holders have registered an address in the UK.

The prospect of obtaining this information has prompted HMRC to introduce the NDO. Under the NDO people who make a complete and accurate disclosure, between 1 September 2009 and 12 March 2010 (see timetable below), of any unpaid tax arising as a result of offshore assets will be able to settle their tax liabilities at a favourable (10%) penalty rate. Failure to take advantage of this opportunity may result in a higher penalty on subsequent discovery of the unpaid tax and in extreme cases may result in prosecution.

If you were written to by HMRC under the previous offshore disclosure facility (ODF) (that ran from April to November 2007) about offshore income but did not take advantage of the ODF but now wish to make a disclosure, you will be subject to a less favourable penalty of 20%.

 
timetable

The timetable for the NDO is as follows:

• 1 September 2009 – earliest date for notification by paper, the closing date is 30 November 2009
• 1 September 2009 – earliest date for disclosure by paper, the closing date is 31 January 2010
• 1 October 2009 – earliest date for online notification, the closing date is 30 November 2009
• 1 October 2009 – earliest date of online disclosure, the closing date is 12 March 2010

HM Revenue & Customs have also reached agreement with the Lichtenstein authorities and a separate disclosure applies to those with accounts and funds in Lichtenstein. As this disclosure will only cover 10 years unlike the 20 years of the NDO there would be an advantage in disclosing under this note if you have undisclosed Lichtenstein income or gains.

If you have any questions or wish to make a disclosure then please contact your usual engagement partner or a member of the tax team.

Nigel Landsman
Partner | 020 7969 5549
nlandsman@haysmacintyre.com