The net tightens as Jersey agrees tax disclosure package with UK

The States of Jersey have just announced a package of tax measures with the UK Government to: “join in the global action to combat tax evasion: including automatic exchange of information and a disclosure facility.  The package of measures is known in Jersey as the “UK FATCA”.

The Channel Island state, a so-called Crown Dependency of the UK, had once been considered to be a major Tax Haven, and bastion of banking secrecy.  But Jersey and the UK have now agreed:

  • The main draft of an Inter-Governmental Agreement (IGA) that closely follows the Foreign Account Tax Compliant Act (FATCA) IGA currently being negotiated with the USA;
  • A disclosure facility, to allow UK based investors with bank accounts and assets in Jersey to step forward and regularise their historic tax affairs with Her Majesty’s Revenue & Customs;
  • Automatic supply of Jersey bank account information to the UK tax authorities ;
  • An alternative reporting arrangement for UK residents who are non-domiciled for tax purposes in the UK ( a.k.a. UK Res Non-Doms).

Jersey’s Senator Gorst said: “It is in the Island’s long-term interests to keep in step with the global direction of travel towards greater transparency.”

These tax measures are very similar to those recently agreed with Guernsey and the Isle of Man.

What does this mean for me?

If you have a bank account or other financial institution account, or insurance policy or bond, in Jersey, the Isle of Man, Guernsey, Sark, or any UK Crown Dependency or British Overseas Territory then the likelihood is that HMRC will be given your details in the near future.

In order to avoid prosecution and swingeing penalties now may be the time to consider making a full, voluntary disclosure to HMRC. You still have until 2016 to take advantage of HMRC’s generous tax amnesties.  These include the new Isle of Man Disclosure Facility, and the most favourable tax amnesty – known somewhat confusingly as the Liechtenstein Disclosure Facility, which is actually open to anyone – and there’s no need for a prior link to Liechtenstein.

How can Lynam Tax disclosure experts help me?
Lynam Tax Disclosure Specialists have an enormous amount of experience in dealing with UK taxpayers with offshore bank accounts. We are already helping a large number of people obtain optimum outcomes using the various tax amnesties, such as the Swiss Tax Agreement and the Liechtenstein Disclosure Facility.
For a free, wholly confidential, and no commitment discussion: telephone
Paul Lynam on: 0845 643 9997
or
Andrew Nutbrown on: 07718 778710