The government is currently reviewing responses to its public consultation on helping taxpayers get their offshore tax right before it progresses to drafting new legislation on the issue.
The consultation, which closed on 15 June, focused on how HM Revenue and Customs (HMRC) could use data in different ways to help taxpayers get their tax right, better support taxpayers with their offshore tax obligations and work with agents and intermediaries to help promote offshore tax compliance.
‘Offshore tax’ is UK tax that is due on non-UK income, gains or transfers.
HMRC define ‘offshore income’ as income that comes from a jurisdiction outside the UK. It includes:
- interest from overseas bank or building society accounts;
- dividends and interest from overseas companies;
- rent from overseas properties.
In the consultation documentation, HMRC explain, “As we learn more about the reasons people sometimes get things wrong with their offshore tax affairs, we are keen to use this learning to support taxpayers as much as possible.
“Some taxpayers get things wrong, due to mistakes, because they do not get appropriate advice when needed, or because of the complexity of their tax affairs. There are also certain times in a taxpayer’s life when further complexities arise, such as marriage and divorce or death and bereavement, which can impact on offshore tax liabilities.”
Establishing how much offshore tax you owe can be challenging but our expert tax lawyers can provide you with specialist guidance and advice. Contact us to discuss your individual circumstances.
For further information on the consultation, see https://www.gov.uk/government/consultations/discussion-document-helping-taxpayers-get-offshore-tax-right
For more information and legal advice, please don’t hesitate to contact Healys LLP today.