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HW Tax Compliance

The LDF

Facing a tax investigation? Need to make a disclosure to HMRC? Don’t worry. One of our team will be able to help. Just get in touch.

What is the LDF?

If you possess an offshore bank account or investment, the LDF is a means to voluntarily declare any associated UK tax liability.  The LDF is available to individuals, trusts and companies and was originally available until 31 March 2016 but will now be closed to any new registrations on 31 December 2015.

In order to qualify for registration into the LDF, a UK taxpayer must first possess “Relevant Property” in Liechtenstein.  This Relevant Property refers simply to assets or investments held in Liechtenstein, and can be obtained by opening a Liechtenstein bank account.

The key terms of the LDF

The LDF offers favourable terms for taxpayers to declare their worldwide assets.  If you chose to enter into the LDF you will be requried to:

  • disclose all irregularities from commencement or back to 6 April 1999, whichever is the shorter
  • pay all taxes due, calculated either by actual rates or the Composite Rate Option of 40%
  • pay interest on all tax paid late
  • pay a penalty capped at 10% of the tax due for the 10 year period ending 5 April 2009, thereafter 20%

Benefits of the LDF

The LDF is unique to other HMRC disclosure facilities, as it offers guaranteed immunity from prosecution for tax related offenses.

It also enables taxpayers to disclose any worldwide income or gains irrespective of where the asset is or has been located.  An example in contrast is that the Jersey Disclosure Facility is only available for income and gains arising from Jersey based assets.

How can Haines Watts help?

Haines Watts will be able to:

  •      assist you in obtaining the necessary Relevant Property
  •      register those who wish to make a disclosure to HMRC under the terms of the LDF
  •      discuss matters with HMRC initially on a no name basis
  •      calculate the potential tax liability
  •      determine how matters may be treated and taxed with HMRC
  •      discuss with you how to proceed with the disclosure
  •      submit a Report with all the relevant forms completed
  •      negotiate a full and final Settlement with HMRC as necessary

To get more information on the Liechtenstein Disclosure Facility in a printable format, download our factsheet for The Liechtenstein Disclsoure Facility (LDF).

If  you wish to discuss this or any other matter with a member of the team, please contact us.

If you cannot find the information you need on our website, please contact Paul Malin or Andy Maxfield using our contact form or email directly to pmalin@hwca.com or amaxfield@hwca.com

Get in touch

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Birmingham

Haines Watts Birmingham
Sterling House
71 Francis Road
Edgbaston
Birmingham
B16 8SP

Leeds

Haines Watts Leeds
Sterling House
1 Sheepscar Court
Meanwood Road
Leeds
LS7 2BB

London

Haines Watts London
New Derwent House
69 – 73 Theobalds Road
London
WC1X 8TA

Our addresses

Birmingham

Haines Watts Birmingham
Sterling House
71 Francis Road
Edgbaston
Birmingham
B16 8SP

Tel: 0121 456 1613

Leeds

Haines Watts Leeds
Sterling House
1 Sheepscar Court
Meanwood Road
Leeds
LS7 2BB

Tel: 0113 3981100

London

Haines Watts London
New Derwent House
69 – 73 Theobalds Road
London
WC1X 8TA

Tel: 0207 025 4650