It is part of HMRC’s Tax Amnesty initiatives – 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. If you are under investigation by the taxman or want to make a disclosure then Lynam Tax Enquiry Experts can help you take advantage of the generous terms on offer through 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; in return for 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 much less than the usual 20 year time limit for most taxes and the indefinite period for Inheritance Tax.

5. Accepted Disclosures will qualify for a fixed penalty of 10% – unless you received a letter from HMRC as part of the Offshore Disclosure Facility (ODF: tax amnesty 2007) where the penalty will then be 20%.

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: which can be especially useful for traders with multiple taxes on the same income (e.g. higher arte Income Tax plus VAT)

10. Advisers can make the Disclosure on your behalf but you have to confirm its accuracy.

11. Full payment of all tax, interest and penalties must normally be made with the Disclosure; but time to pay arrangements can sometimes be agreed.

12. 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.

These are by far the most generous terms ever offered by the taxman. 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 are already helping a significant percentage of all the taxpayers who have so far 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.