Summer 2007 Newsletter Content Reverse Charges Beyond The Grave Director's Two Hats IHT Plan Fails VAT And Cash Amnesty International An Inspector Calls Losing A Bet Caring Doctors TAAR Brush Made To Be Broken Flat VAT Safe Deposit Tax On Gas Working Late Composite Companies Excuses, Excuses

Amnesty International If you are UK resident and not "foreign domiciled" (usually meaning your parents were not born here), any income earned abroad is taxable. Last year, the Revenue persuaded a court that one of the high street banks had more customers with foreign accounts than the total number of UK taxpayers who declare foreign income. The court issued orders to all the major banks requiring them to give lists of names to the Revenue so they can check who's not been telling. On 17 April, HMRC announced that they would allow people and companies who had not previously fully declared offshore income or gains to come clean and settle up. The "carrot" is the chance to only suffer a 10% penalty (plus tax and interest); the "stick" is that the Revenue reckon they have a long list of people who should disclose, and they will be opening enquiries the day after the disclosure deadline (22 June 2007). Barclays have written to all their affected customers to warn them, and the other banks are likely to follow suit. A similar "carrot" is being offered to people with other undeclared tax liabilities, but the Revenue do not have the same clear source of information on those who fail to use it.This is an important opportunity. Some people will have failed to declare their offshore money because they don't know it's taxable. Some may suspect that it's taxable but hope that no-one will ever know. If anyone with tax to pay fails to take advantage of the Revenue's offer and is discovered later, they will suffer much higher penalties. If you think this may be relevant to you, you should discuss the matter with us urgently. There's a set procedure to follow and a tight timetable. Bear in mind that a partial disclosure will be the worst of all possible worlds: the Revenue will want to know not just about the interest on the foreign account, but where the capital came from. Anyone making a disclosure will have to be ready to tell all and put themselves completely straight.