LDF - Latest News
18 September 2009
BTG Tax representatives met with Andy Cole, the HMRC official who led the team which negotiated the Memorandum of Understanding with Liechtenstein on behalf of the UK Government, on 17 September 2009 and he confirmed that:
- Persons who opened up offshore bank accounts outside of the UK can acquire a Liechtenstein asset (meeting the relevant property definition) and participate in the Liechtenstein Disclosure Facility (LDF) thus benefitting for the restricted 10 year disclosure.
- Persons who opened up offshore bank accounts through a UK branch or agency cannot acquire the Liechtenstein property and qualify whether they continue to hold the UK opened accounts or not. They will require a 20 year disclosure under the New Disclosure Opportunity (NDO) terms.
- As the LDF progresses HMRC in conjunction with the Liechtenstein Government will clarify and as necessary amend the LDF to ensure it meets its desired goal to encourage voluntary disclosure of tax liabilities primarily arising from Liechtenstein based financial products and structures.
- HMRC believe the LDF to be fully Human Rights compliant.
- HMRC invite questions for clarification and they will continue to update their Frequently asked Questions (FAQ’s) page on their web site over the coming months.
- Individuals can register under both LDF and NDO whilst they explore with HMRC whether or not they are eligible under the beneficial LDF scheme. Given the 30 November 2009 deadline for NDO registrations this is a matter which needs careful attention immediately.
BTG Tax wrote a letter to Dave Hartnett (Permanent Secretary for Tax), the man ultimately responsible for the LDF, to push for greater clarity on the LDF issue.
Read the response to that letter here.
If you wish to discuss this update further, please contact one of our tax investigation specialists on 0845 678 2903 quoting reference “LDF” to discuss, in confidence, how we can provide a solution for your particular situation.
How can we help?
Here at BTG Tax we will listen to your situation and advise on the best course of action. What is clear is that there is no hiding place for those with undeclared income and gains offshore and they need to act now.
We have the contacts and facility to assist in the opening of Liechtenstein bank accounts or the setting up of other financial structures. This is not a straightforward area and professional advice is recommended. Through our contacts in Liechtenstein we can ensure you get the appropriate legal and financial advice.
Please contact one of our tax investigation specialists on 0845 678 2903 quoting reference “LDF” to discuss, in confidence, how we can provide a solution for your particular situation.
Alternatively, to contact us directly through the website, please click here and we will get back to you promptly.
Key LDF contacts:
Leo Coyle for Northern Ireland, Andrew McKenna for Scotland and the North, Sue Bradshaw for the South, Jeff Millington for the Midlands.