The news that WikiLeaks has been provided with details of Swiss bank accounts by a former bank employee may be of concern to UK taxpayers who have foreign banking undisclosed to HMRC.

The fact that information can be leaked from banks coupled together with mutual agreements between governments, highlights the importance of voluntary disclosure before being “caught” by HMRC. 

The Liechtenstein Disclosure Facility (LDF) currently represents an excellent way to make a voluntary disclosure.  Individuals with assets in any other offshore location may be able to participate in the LDF by moving some assets into Liechtenstein.

The LDF can provide a significant reduction in the level of penalties and a reduced window of reporting requirement: usually unreported income from 20 years ago must be disclosed, however this is reduced to 10 years under the LDF.

Eaves and Co Specialist Tax Advisers have successfully completed robust disclosures under the LDF and are in the process of preparing a number of other disclosures.  If you require advice in confidence regarding such matters call our Leeds office on 0113 244 3502, asking for Paul Davison.

HM Revenue and Customs have updated the guidance on residence, domicile and the remittance basis contained in HMRC6.

Since 6 April 2008, in determining how many days a person has spent in the UK for the purposes of the 183 day test and 91 day test, taxpayers have been able to exclude days in which they were not present at midnight.

However, the new guidance in HMRC6 suggests that where a person spends substantial time travelling to and from the UK, HM Revenue and Customs may seek to look at all the days in which a person was in the UK even where they were not present at midnight.   This appears to build on the recent case of Mr Gaines-Cooper.

The 91 day test is now discussed comprehensively in the coming to the UK section and rather limitedly in the leaving the UK section (in fact it is only referred to here where a person leaves to work abroad full-time), thus the implication is that HM Revenue and Customs now see the 91 day test as a way of bringing people within the UK tax net rather than a way of letting people out of it.

Please call Eaves & Co, Specialist Tax Advisors if you have any UK tax residence issues.

Eaves & Co Leeds, have advised recently on two areas where tax might have been paid twice on the same income:-

  1. A FURBS which paid tax on its income and the trustees suffered PAYE on the same income. Tax credit relief and ESC A68 may be available.
  2. Two cases where profits have been taxed in the US and our UK client wishes to avoid double tax by also paying UK tax.

If you have a case where tax may be payable twice we would be pleased to discuss how relief may be available.