Worldwide Disclosure – Time running out

Cessation of Worldwide Disclosure Facility
Tax payers have a few weeks left to take advantage of The Worldwide Disclosure facility. The Worldwide Disclosure, which opened in September 2016 is closing from 30 September 2018. The disclosure dealt with income and gains which have an offshore element in them.

From 30 September 2018, there will be new legislation to replace the Worldwide Disclosure, called “Requirement to Correct”.  Individuals disclosing undeclared income and gains will subject to harsher penalties under this regime.

The Financial Secretary to the Treasury, Mel Stride MP, said:

Since 2010 we have secured over £2.8bn for our vital public services by tackling offshore tax evaders, and we will continue to relentlessly crack down on those not playing by the rules.This new measure will place higher penalties on those who do not contact HMRC and ensure their offshore tax liabilities are correct. I urge anyone affected to get in touch with HMRC now.

HMRC have stated:

“From 1 October more than 100 countries, including the UK, will be able to exchange data on financial accounts under the Common Reporting Standard (CRS). CRS data will significantly enhance HMRC’s ability to detect offshore non-compliance and it is in taxpayers’ interests to correct any non-compliance before that data is received.”

Worldwide Disclosure Facility is used mostly for foreign income and property. HMRC have stated that “over 17,000 people have already contacted HMRC to notify the department about tax due from sources of foreign income, such as their holiday homes and overseas properties.”

HMRC have provided examples of what could be construed as offshore assets : art and antiques; bank and other savings accounts; boats; cash; debts owed to you; gold and silver articles; government securities; jewellery; land and buildings, including holiday timeshare; life assurance policies […]

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The Summer Budget- ACCA responds

The Summer Budget- ACCA responds
The ACCA’s Head of Taxation, Chas Roy-Chowdhury, has commented on the Summer Budget delivered by George Osborne.
Inheritance Tax

“The Chancellor should have been bolder in his first Budget in a Conservative majority government. The change to inheritance tax is a positive step, although he could have just removed the primary residence from the scope of the tax entirely. This would have made it a level playing field for all. He has introduced a highly complex system of relief tapers and carry forwards.”

“Many people imagine a house worth £1million to be a mansion but in the South East, and especially London, that is not the case.”

Living Wage

“We welcome that he took the opportunity to incentivise employers to pay the living wage. During the election campaign he and the Prime Minister spoke about raising wages for all but a commitment to eventually raising the minimum wage. This is the right direction at £9 per hour and increasing the NIC relief to £3,000.”

Corporation Tax

“It was a very pleasing and important message to send to the global business community to continue to reduce corporation tax. Although a reduction to 18% by 2020 will be welcome Mr Osborne could have gone further by continuing the 1% per year reductions throughout this parliament. We are in a competitive global market and the more we can do to encourage all businesses to the UK, the better the long-term tax yields will be.”

Fiscal Drag

“We welcome the rise in the 40% tax threshold, something the Chancellor has wanted for some time. Over the past five years, he has restricted the personal allowance increase to basic rate taxpayers and on many occasions lowered the level at which the 40% rate came in. If […]

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