HMRC warns that taxpayers could face penalties if they fail to declare their income on foreign assets before the ‘Requirement to Correct’ legislation comes into force.
This new legislation, which starts from 30th September, requires UK taxpayers to notify HMRC about any offshore tax liabilities relating to UK income tax, capital gains tax, or inheritance tax.
However, some UK taxpayers may not realise they have a requirement to declare their overseas financial interests.
For example, renting out a property abroad, transferring income and assets from one country to another, or even renting out a UK property when living abroad could mean taxpayers face a tax bill in the UK.
The Financial Secretary to the Treasury, Mel Stride MP, said, “Since 2010 we have secured over £2.8bn for our vital public services by tackling offshore tax evaders, and we will continue to relentlessly crack down on those not playing by the rules.
“This new measure will place higher penalties on those who do not contact HMRC and ensure their offshore tax liabilities are correct. I urge anyone affected to get in touch with HMRC now.”
Once a customer has notified HMRC (by 30th September) of their intention to make a declaration, they will then have 90 days to make the full disclosure and pay any tax owed.
Over 17,000 people have already contacted HMRC to notify the department about tax due from sources of foreign income, such as their holiday homes and overseas properties.
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