Liechtenstein Disclosure Facility

Do you have a tax liability in relation to an offshore bank account, trust, company or other offshore structure?

If so, you may be able to take advantage of HMRC’s Liechtenstein Disclosure Facility (LDF) and cap the tax liabilities at the period 6 April 1999 onwards. This may apply even if you have registered an intention to make a disclosure under the NDO or if there is currently an HMRC investigation underway, so long as the investigation is not under Code of Practice 9 or a criminal investigation.

The LDF can be used regardless of where the offshore accounts or assets are currently situated.  The LDF provides for a 10% fixed tax geared penalty as with the NDO but, crucially, seeks to assess liabilities for only the last 10 years, as opposed to the 20 year period considered in the NDO.  It also includes the option of a composite rate of tax of 40% per annum which can save tax where multiple taxes are involved.

This means that a taxpayer could, if they arranged their affairs correctly, cap their tax liabilities to a 10 year period even though historic income, gains or IHT charges arose in relation to assets which were at the time not in Liechtenstein.  This could save tax, interest and penalties of over 50% compared to either an NDO disclosure or any subsequent HMRC investigation. 

Even for taxpayers with offshore liabilities arising wholly within the last 10 years, this mechanism could still prove attractive given that the NDO deadline has passed, and the LDF offers a low fixed penalty, will prevent a costly, time consuming and intrusive HMRC investigation, and provides immunity from prosecution.

Although taxpayers may currently or historically have had no investments or interests in Liechtenstein, they may still qualify for the LDF by taking some straightforward steps now.   

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BlackStar Tax Resolutions

Enquiries and investigations by HM Revenue & Customs (HMRC) into business or personal tax affairs are often distressing, time consuming and expensive.  At BlackStar Tax Resolutions we understand how important it is to minimise the levels of worry, time and costs of dealing with HMRC, whether you  are facing up to it personally or you are a professional adviser with many demands on your time trying to ensure your client receives appropriate professional advice in a specialist area.

We are pleased to offer the quality of individuals and level of service one would expect from the ‘Big 4’ accountancy firms without the costs you might associate with this.  Our team comprises very senior investigations specialists recruited from the ‘Big 4’ and with significant experience working in specialist investigations roles at HMRC.

We are well equipped to resolve contentious tax disputes and enquiries into private and listed companies, partnerships, offshore structures and investments, individual residence and domicile issues, corporate residence, benefits in kind on properties/aircraft/yachts, contentious areas of business expenditure, anti avoidance legislation on income and capital gains, employee benefit trusts and many other areas of corporate and personal taxation.

We also specialise in advising on disclosures that may need to be made to HMRC to regularise the tax affairs of a business or individual if errors or omissions have been made in the past and have real insight from the inside into the techniques and procedures used by HMRC.

Our investigations and dispute resolutions services include:

  • Specialist Investigations (formerly Special Civil Investigations) Code of Practice 8 and Code of Practice 9 investigations
  • Defence work on Anti Avoidance Group/Specialist Investigations enquiries into tax enhanced structures and disclosed avoidance schemes
  • Civil Investigation of Fraud Units (CIF) investigations under Code of Practice 9
  • Personal and corporate tax enquiries by local tax offices
  • Enquiries by HMRC’s High Net Worth Individual (HiNWI) Unit
  • PAYE/NIC enquiries and employment status disputes
  • VAT enquiries
  • Advice on HMRC information powers

Contact Us

If you would like to speak to us on a free and confidential basis please contact us by email or telephone on 020 7009 1090 (London) or 0121 321 6060 (Birmingham).

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