Now a second opinion from an expert is just one phone call away – PART III
Do you have an offshore structure? If so, are you confident any UK tax issues have been identified and dealt with correctly by your service provider? Does the service provider of your structure have sufficient UK tax expertise to give you peace of mind in this regard?
If you have any concerns, now is the time to take action.
Requirement to correct
The Finance Bill 2017 contains provisions which are effectively HMRC’s final push to encourage taxpayers to correct any historic offshore tax issues before exchange of information occurs under the Common Reporting Standard. In short, these provisions require taxpayers to correct any “non-compliance” within their tax affairs by September 2018. Failure to do so could result in a penalty of up to 200% and, in certain circumstances, an asset based penalty of 10%. HMRC also have powers to potentially publish details of people assessed to such penalties. Clearly, this could prove an expensive and distressing matter for those affected.
Which tax years are in question? HMRC can look back 4 years for innocent mistakes, 6 years for careless errors and up to 20 years where the mistake was deliberate. For inheritance tax, where the mistake was deliberate, there is no time limit.
What action should you be taking now?
If you have any concerns about whether your existing service provider is sufficiently qualified to identify potential UK tax issues, you should contact us. Tax advice at the time of making the structure may not be sufficient. The advice may not have been implemented correctly or the rules may have changed. Actions taken by the incumbent service provider may have created unexpected and unidentified UK tax issues either for you personally or the structure or both. Now is not a time for burying your head in the sand as automatic exchange of information is now upon us.
How can Abacus help?
At Abacus, we have a dedicated team of in-house tax specialists which reduces the risk of UK tax issues being overlooked and ensures any tax advice received in relation to a structure is implemented correctly. Where changes to a structure take place after the tax advice has been provided, such as a change of tax residence of a key person to a structure, having in-house tax specialists ensures any tax consequences can be identified and where required, follow-up questions can be asked of the tax advisor.
If you would like to know more about the services we provide or speak to a member of our team, please visit our website at AbacusIOM.com.