Offshore Disclosure

[duggan]

Hello All,

Not sure if anyone has had nofication from thier banks on this - with respect to the notification of interest earned on offshore accounts - question I have is how in-depth is ths disclousure - i.e if you disclose the interest earned is that the end of it (and you pay the tax) - or is there any further proceeding with respect to how the money came to be offshore? appreciate any comments.

[Eric Mc]

You will be asked to pay all unpaid taxes due in respect of this interest - taking into account any Double Tqaxation Agreement that may exist between the UK and the country where the account is held.

The Revenue are, generously, only going to levy 10% of any penalties that would normally be due. And they will also be charging interest on the late payment of any outstanding rax.

Finally, they may veryu well open enquiries top ascertain where these overseas invested amounts might have originated in the first place.

[duggan]

Thanks for that Eric - I've downloaded the doc from the hmrc website - looking at the document - if the money was made within the UK, by an Offshore company (for which the local tax was paid), in addition to any EU Withholding tax on interest earned - I take it that HMRC will consider the case closed (providing any interest tax is paid prior to the intorduction of EU Witholding tax) - i.e that the money remains offshore?

Appreciate any comments

[Eric Mc]

Whether the money remains offshore or not is not an issue. If you are a UK tax resident and are also domiciled in the UK, your WORLDWIDE income is potentially taxable in the UK - even if none of that income was ever remitted into the UK.