UK residents who have offshore accounts in the Isle of Man now have three years to disclose income from those accounts to HMRC and pay tax on that income. If they come forward they would face penalties of between 10% and 20%. If they don’t come forward, fines of up to 200% could be imposed by HMRC.
This new disclosure facility means that any UK resident with a bank account in the Isle of Man will automatically have their information shared every year. If these accounts are not disclosed before September 2016, not only will larger fines be imposed but there may also be a risk of prosecution. Unlike the recent Swiss disclosure facility there is no guarantee of anonymity.
This disclosure agreement is set to begin on April 6th and run all the way until the final date in September 2016. The government has said it is committed to tackling tax evasion head on and will help HMRC clamp down on those who are hiding their money in offshore accounts.
If you have an offshore account and need advice, call Alexander & Co today on 0161 832 4841 or complete our simple online enquiry form. Alexander & Co are specialist tax accountants based in Manchester city centre and Media City, Salford Quays.