Offshore disclosure query ....

[Nemo]

I know an excellent guy but he's Glasgow based. PM me if you want the details.

Sorry new to this - what does pm me mean ?

cheers


To work out your liability, or to get you off?

tiom

tim - to pay the correct amount - i just want to know exactly where i stand - any ideas much appreciated !!

[Diver]

Private message

goto userCP top of page left on bar

[kohli25]

Offshore Disclosure - Are you domciled outside UK?

The issue of offshore disclosure is an interesting one. One area that has not been touched is the area of "Domicility". One generally inherits the domcility of one's father.

Domicility is not necessary linked to your nationality, but you inherit the domcility of your father's country of origin as a default. If however you can prove that you have links to a country outside UK, in terms of financial and social links you can elect to have your country of domicilty outside UK. You need to have the intension to retire in the country you elect as your domcility.

By having an election of domicility outside UK it means that offshore interest or income is not taxable in UK unless you remit it to the UK, that is bring it into the UK.

So for those of you who are not originally from UK, you should register your Domcility outside UK if the above holds. This will ring fence your asstes and income as being taxable in UK only and not on worldwide assets. Hence any interest earned outside UK is not declarable or taxable unless it is brought into UK.

To register for domcility outside UK a DOM1 form needs to be completed. This can be found on our website www.poweraccountax.co.uk

If you Visit Resources & Downloads, and select "forms" you should be able to access this form.

[BoyBlue]

Jester, as I understand it, if you accumulated your money while you were non UK resident then they cannot ask you for any taxes on the capital + interest paid while you were non tax resident and working outside the UK (from 1994 - 2000 as you said). However any funds deposited\remitted and intersted paid after your return to the UK (ater your 2000 return date) are taxable and this is exactly what they are after. It seems you have made the disclosure as HMRC have sent you a letter? I guess they would not start contacting anyone until after the June 22nd deadline. It appears all they can ask you for is tax on the interest paid since 2000 and tax on any money you brought into the UK from it (although not 100% sure about the 2nd part) + the 10% fine (if you have used the disclosure).

I left the UK over 5 years ago to work in Europe and have never been back since, in fact I am even registered with the IR as non tax resident. I opened a offshore account after I arrived in Europe where I have been working ever since. The account was opened using my parents UK address for correspondence. My parents imformed me that I received a letter from my bank saying that they had passed on my details to the UK IR (because my account was linked to a UK address). As I am non UK tax resident I do not have to inform them of anything and I am not required to make any UK tax returns (I am tax resident in another European country). It affects the people who are UK tax resident but have been putting money offshore under the guise of now gone banking secrecy that will be investigated (could take years) if they did not use the disclosure facility.

It seems not many people have taken up this 'amnesty' offer and I guess they are many people like myself who are non UK tax resident and have no taxable income from the UK so are in fact have nothing to do with the UK tax system. Also could be many people have not been reading the news about this and the first they will know of it is when the letter from their bank drops throught their door.

By the way I'm no tax advisor it just what I have read from various site from the web.

[Jester]

Jester, as I understand it, if you accumulated your money while you were non UK resident then they cannot ask you for any taxes on the capital + interest paid while you were non tax resident and working outside the UK (from 1994 - 2000 as you said). However any funds deposited\remitted and intersted paid after your return to the UK (ater your 2000 return date) are taxable and this is exactly what they are after. It seems you have made the disclosure as HMRC have sent you a letter? I guess they would not start contacting anyone until after the June 22nd deadline. It appears all they can ask you for is tax on the interest paid since 2000 and tax on any money you brought into the UK from it (although not 100% sure about the 2nd part) + the 10% fine (if you have used the disclosure).

I left the UK over 5 years ago to work in Europe and have never been back since, in fact I am even registered with the IR as non tax resident. I opened a offshore account after I arrived in Europe where I have been working ever since. The account was opened using my parents UK address for correspondence. My parents imformed me that I received a letter from my bank saying that they had passed on my details to the UK IR (because my account was linked to a UK address). As I am non UK tax resident I do not have to inform them of anything and I am not required to make any UK tax returns (I am tax resident in another European country). It affects the people who are UK tax resident but have been putting money offshore under the guise of now gone banking secrecy that will be investigated (could take years) if they did not use the disclosure facility.

It seems not many people have taken up this 'amnesty' offer and I guess they are many people like myself who are non UK tax resident and have no taxable income from the UK so are in fact have nothing to do with the UK tax system. Also could be many people have not been reading the news about this and the first they will know of it is when the letter from their bank drops throught their door.

By the way I'm no tax advisor it just what I have read from various site from the web.

Thanks BoyBlue - that's how I understood it as well. It looks as though I will be liable for the tax on the interest accrued since my return to the UK.

[yetanotherone]

Looks like there will shortly be lots of broom handles going up jacksies!

Good luck boys!