Requirement to Correct
Taxpayers with UK tax liabilities relating to income tax, capital gains tax or inheritance tax that involve offshore matters are now required to disclose the liabilities to HMRC by 30 September 2018, under the new Requirement to Correct legislation.
Failure to disclose the relevant information to HMRC on or before 30 September 2018 could result in unprecedented sanctions. HMRC will be given a further four years in which to assess the undeclared tax and penalties could range between 100% - 200% of the tax involved.
Penalties may also include a fine of up to 10% of the value of the relevant asset and 'naming and shaming' on HMRCs website.
Penalties will apply even where someone has been careless with their affairs - intent is not necessarily required.
How we can help
Pinsent Masons' tax investigations team can assist in the understanding of the Requirement to Correct process and advise on what information should be disclosed to HMRC.
We have a hotline dedicated to Requirement to Correct queries, enabling you to speak directly with one of our tax investigations specialists:
+44 207 490 6612 - Monday-Friday 9am - 8pm, Saturday 10am – 5pm