The UK and the Isle of Man have today published an agreement so that the Manx financial institutions will pass information to the UK taxman: and in return HMRC are setting up an incentivised tax disclosure facility for anyone holding relevant accounts or property in the island.
The deal involves a Tax Information Exchange Agreement, whereby the Isle of Man will pass information automatically to HMRC: without a specific request being needed. HMRC will set up a disclosure mechanism: similar to the Liechtenstein Disclosure Facility Tax Amnesty.
The Isle of Man Disclosure Facility will allow investors in the Isle of Man to step forward and settle their past tax liabilities, before information on their accounts is automatically passed to Her Majesty’s Revenue & Customs. The information sharing agreement is based on the UK-USA agreement to Improve International Tax Compliance and to Implement Foreign Account Tax Compliance Act (FATCA).
The Isle of Man Disclosure Facility will operate from 6 April 2013 to 30 September 2016. Undeclared tax liabilities from April 1999 must be fully disclosed, and there are guaranteed penalty rates. The facility will not be available to anyone undergoing a tax investigation. Where HMRC uses the information made available under the information sharing agreement, it will seek significantly higher penalties and may launch criminal proceedings.
The Chancellor of the Exchequer, George Osborne said: “The Government is committed to tackling tax evasion and this agreement will greatly enhance HMRC’s ability to clamp down on those who try to hide their money offshore. The UK Government has also signed agreements with the US and Switzerland so far, and we are in discussions with Jersey and Guernsey as part of our common commitment to combat tax evasion.”
What does this mean for me?
If you have a bank account or other financial institution account, or insurance policy or bond, in the Isle of Man, Jersey, Guernsey or Sark, and undeclared UK tax liabilities – 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, including 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 need not be any 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
Andrew Nutbrown on: 07718 778710