Before the deadline of 30 September, HMRC are urging Accountants and Taxpayers who suspect that they have unpaid tax relating to overseas assets, income, or activities, need to act to avoid incurring much higher penalties for non-compliance and falling foul of the new Requirement to Correct (RTC) rules.
The RTC rules require taxpayers to make a disclosure of unpaid tax on assets, income, and activities in other countries, and on transfers from the UK to other countries.
Failure to do so would lead to, the minimum penalty of 100% of the tax owed – and it could be much higher depending on circumstances – There is also no minimum level cut-off point, so all those with any unpaid offshore tax will need to make a disclosure.
it, or those who have moved to the UK from overseas but who have assets or income from other international businesses. All will need to declare on their tax position.
The ruling applies to income tax, capital gains tax, and inheritance tax, and mainly affects individual taxpayers. There will be circumstances in which companies that pay income tax as non-resident landlords, will also need to make sure the appropriate amount of tax is paid and disclosed – The recommendation is that trustees, settlors, and beneficiaries of trusts with overseas interests should also check.
If you are concerned that you may be affected, let us help you. There is time to check and to be proactive in terms of tax compliance and adherence to RTC.