Requirement to Correct tax due on offshore assets

11th Jul 2018 • • Accounting Finance

This guidance provides information about the new Requirement to Correct (RTC) legislation. It explains what the RTC is and provides information for those who are required to disclose information to HMRC under the new RTC rule before the deadline of 30 September 2018.

Those making a disclosure may need to refer to other guidance on taxes or disclosure routes in order to comply with the RTC rule. Taxpayers, especially those with complex financial arrangements, may wish to seek professional advice on the new rule.

The purpose of the RTC legislation is to require those with undeclared offshore tax liabilities (relating to Income Tax, Capital Gains Tax or Inheritance Tax for the relevant periods) to disclose those to HMRC on or before 30 September 2018. c This will allow HMRC to take the appropriate action, for example, the collection of tax, interest and any penalties due under the appropriate legislation currently in force. This will ensure that those with offshore interests pay the correct amount of tax. Where taxpayers are unsure whether they have undeclared offshore tax they will need to review their affairs to check whether action is needed to comply with the RTC.

To ensure there is an incentive for taxpayers to correct any offshore tax non-compliance on or before 30 September 2018 there are increased penalties for any failures to correct by that date. 

Read More