Liechtenstein Disclosure Facility

The Liechtenstein Disclosure Facility (LDF) is he real tax amnesty.  It is not limited to taxpayers with accounts or assets in Liechtenstein.  It’s available to anyone with undisclosed tax liabilities, who also had an offshore bank account or asset at some point; but there is no necessity for a prior link with Liechtenstein!

It is the only true HMRC Tax Amnesty - to encourage full disclosures of tax irregularities, especially those related to offshore bank accounts and assets.  Crucially however, it is not limited to taxpayers with accounts or assets in Liechtenstein.  Whether you want to make a voluntary disclosure or are under investigation by the taxman, Lynam Tax Enquiry Experts can help you take advantage of the generous terms on offer through the LDF.

Key points about the LDF

1.  The Liechtenstein Disclosure Facility is an HMRC initiative enabling UK taxpayers to clean up historic tax irregularities by registering for the scheme, and then going on to make a full disclosure;on very favourable terms.
2.  It’s only available to people with undisclosed tax liabilities which are in some way “related” to offshore bank accounts or assets; but there is no necessity for a prior link with Liechtenstein!  Lynam Tax can advise further on this key matter.
3.  LDF registration comes with a guarantee that HMRC will not prosecute in respect of the full disclosure.
4.  The Disclosure has to cover all relevant years, but only from 1st April 1999; which is potentially much less than the usual 20 year time limit!
5.  Accepted Disclosures nearly all qualify for a low fixed penalty of 10%.
6.  The LDF covers all taxes: e.g.  Income Tax, Corporation Tax, VAT, CGT, IHT.
7.  The LDF is not available to anyone being investigated under HMRC’s Civil Investigation of Fraud procedures (i.e. Code of Practice 9) or under criminal enquiry at the date of attempted registration.
8.  The LDF runs from 1st September 2009 to 31st March 2015.
9.  Taxpayers can elect to use a special Composite Rate of 40% to cover all taxes. This can be very beneficial in some circumstances.
10.  Advisers can make the Disclosure on your behalf, but you have to confirm its accuracy.
11.  These are the most generous terms ever offered by the taxman, by far. 
12.  Full payment of all tax, interest and penalties must normally be made with the Disclosure; but time to pay arrangements can sometimes be agreed. 
13.  People who don’t disclose now and are then found by HMRC to have tax liabilities relating to offshore assets/accounts can expect swingeing penalties of between 70% - 200%  (plus the underlying tax and interest) or risk criminal prosecution and Confiscation Orders.

The LDF process can be straightforward in simple cases.  But there are many pitfalls for the inexperienced and for people with more complex tax affairs.  Badly managed Disclosures can have a negative effect; leading to very high penalties, a Civil Investigation of Fraud enquiry, or even prosecution.

Lynam Tax Enquiry Experts have substantial experience of all the various Tax Amnesties, and have lots of clients registered for The Liechtenstein Disclosure Facility.  In particular we can help taxpayers who do not have any Liechtenstein links to take advantage of the exceptional terms available; and are already doing so for a significant number of clients, with the full blessing of HMRC.

Act now.  Call Paul Lynam today on 0845 643 9997 - for a no obligation, confidential consultation.

Ps Are my affairs complex?
If your tax affairs are complicated then you may need specialist help.  Complex issues include: you have several sources of income; your offshore accounts are more than 6 years old; you no longer have links offshore but did have at one time; you hold accounts in joint names; you're a UK trader who has undeclared trading income; your domicile or residence status is unclear; you are non-domiciled but your remittance pattern is complicated; you're an executor of an estate that did not declare the offshore asset/ bank account for IHT purposes; you're currently subject to a tax enquiry or investigation; you have previously been investigated by HMRC; you have assets held offshore but not via Liechtenstein; your affairs are dealt with by HMRC's High Net Worth Unit; you are connected to an offshore entity such as a trust, foundation or non-UK registered company; you are associated with a Liechtenstein structure such as: an anstalt; trust enterprise; trust reg.; treuunternehmen; establishment; trust; treuhandschaften; foundation, stiftung or stiftungen.

Call Paul Lynam now on 0845 643 9997