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September 12, 2013
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Jersey, Guernsey & Manx Disclosure Facilities - Who can benefit?

Brief Summary of the Disclosure Facilities

The Jersey, Guernsey and Manx disclosure facilities (JDF, GDF and MDF respectively) were introduced earlier this year for taxpayers with undisclosed UK tax liabilities (including income tax, capital gains tax and inheritance tax).

Key benefits of the facilities include; reduced rate of penalties (between 10% and 30%) as compared to the normal penalty rates of up to 200% of the tax at stake and a limiting the disclosure period to 1999/00 onwards.

Who Can Benefit from the Disclosure Facilities?

The types of taxpayers that may benefit the JDF/GDF/MDF fall into two broad categories:

1. Those with undisclosed UK tax liabilities and existing interests in Jersey, Guernsey or the Isle of Man , and

2. Those with undisclosed UK tax liabilities who can transfer assets to Jersey/Guernsey or the Isle of Man before 31 December 2013

Some examples of taxpayers that should carefully consider the terms of the JDF/GDF/MDF include:

  • UK residents with undisclosed income or gains from offshore bank accounts/companies/assets etc
  • Beneficiaries of estates where assets were not disclosed to HMRC for inheritance tax purposes
  • UK resident beneficiaries of offshore trusts with undisclosed income/gains
  • Settlors of offshore trusts where the source funds were not subject to UK tax (for example; trading income, interest, dividends or gains)
  • UK domiciled settlors of offshore trusts where the lifetime transfer was not disclosed to HMRC
  • Settlors of offshore trusts where the settlor has an interest in the settlement  and has not disclosed taxable income/gains
  • Settlors/beneficiaries of offshore trusts where the residence or domicile status of the taxpayer has changed over time
  • Trustees that have ceased to be non-UK resident and UK tax has not been paid

Note - The above examples are not intended to be exhaustive.

Who Cannot Benefit from the JDF,GDF, MDF?

Taxpayers whose tax affairs are the subject of a criminal/in-depth enquiry by HMRC at 6 April 2013 are not eligible to participate in the disclosure facilities.

Furthermore, the beneficial terms of the disclosure facilities may not be available where taxpayers:

  • have previously been the subject of criminal or in-depth investigation
  • are linked to any alternative HMRC disclosure facility (such as the Liechtenstein Disclosure Facility)
  • were, on 19 February 2013, a 'relevant person' for the purposes of the UK-Swiss

Those not eligible for the JDF, GDF or MDF may however be eligible to use the Liechtenstein Disclosure Facility (LDF).

 

See our recent testimonials:

- Disclosure under the LDF http://pdtaxconsultants.wordpress.com/2013/09/19/tax-advice-leeds-liechtenstein-disclosure-facility-ldf/

- UK-Swiss tax treaty advice and voluntary disclosure http://pdtaxconsultants.wordpress.com/2013/09/13/testimonial-swiss-tax-treaty-advice-voluntary-disclosure-to-hmrc/

 

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