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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An Overview of Inheritance Tax

When planning out their estates, many people forget about inheritance tax. They bequeath their belongings to their loved ones, and they don’t think about their heirs having to pay that inheritance tax on both property and money that is inherited. Even less people think about it these days because it’s not been in the headlines recently.

It is important to understand that just because the UK has this inheritance tax doesn’t mean that certain groups of people aren’t exempt. That is why it’s important to know the specific laws that surround this type of tax. Currently the inheritance tax threshold is £325,000 per person or £650,000 for a married couple. This is only valid if the first person to die leaves their entire estate to their partner. Everything over this is subject to a 40% levy.

Inheritance tax needs to paid within 6 months of the person dying otherwise there will be interest to pay on the estate. Most people don’t realise that you can pay inheritance tax over 10 years on things that are difficult to sell such as houses and certain types of shares.

If you aren’t sure if the inheritance tax applies to you or your beneficiaries, then it’s time to find out. For starters, there are things that people can do to keep those inheritance taxes out of play. Yes, that’s right, you can take care of it all beforehand so that heirs aren’t having to pay extra taxes.

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Queen’s Speech 2015

Commentary on Queen’s speech 2015
Following on from the Queen’s speech on 27th May 2015, the Association of Chartered Certified Accountants (ACCA) has stated the Queen showed a strong tone for tackling tax avoidance, tax evasion, economic stability and job creation.

Several individuals from ACCA’s offices have commented on the Queen’s speech 2015.

The ACCA’s Head of Tax, Chas Roy-Chowdhury stated “Tackling unacceptable tax avoidance and tax evasion forms a strong pillar of the Government’s economic plan.”

“We are particularly pleased to see the Government’s five year tax lock – this is an interesting move, with no increases in VAT, National Insurance and Income Tax during the lifetime of this Parliament. This is a policy aimed squarely at tax stability, but we also want to see this lock applied so that tax allowances and reliefs are not decreased, such as pensions tax relief.”

Andrew Leck, who is the Head of Western Europe at ACCA commented on the Jobs and Enterprise Bills, stating “We welcome the Government’s commitment to creating 3 million new apprenticeships, and its agenda to find a further £10 billion worth of cuts to red tape for business.”

“The details of both bills will be essential for ensuring business has the means to invest and grow and that businesses large and small are able run workable apprenticeship schemes. We also welcome the Government’s plans for SMEs, especially their creation of a Small Business Conciliation Service to help with disputes and late payment.”

Mr Leck also expressed views on policies for Scotland and Wales, stating: “This Queen’s Speech also deals with two areas which will no doubt define David Cameron’s legacy – Scotland and Europe. Both are set to receive a transfer of powers, in Scotland’s case given ‘devolution max’ is […]

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