HMRC Refines LDF
HM Revenue & Customs has made a number of changes to the way in which the Liechtenstein Disclosure Facility (LDF) operates with the aim of making the agreement more transparent and easier to use.
HMRC and Liechtenstein have agreed to a three month extension of the notification deadline to 31 March 2012 due to what HMRC is calling the ‘complex steps’ involved in ensuring all UK residents affected are identified and the larger than anticipated number of people likely to receive a letter.
In order to streamline the registration process, from 1 December 2011 a Confirmation of Relevance (COR) issued by the Liechtenstein financial intermediary will be accepted as proof that their UK clients have acquired a qualifying asset or established a connection with Liechtenstein’s financial centre.
In addition, HMRC and Liechtenstein have worked closely with the Trustee and Bankers Associations to agree a process which will enable some UK residents who are notified under the LDF to self certify in certain circumstances.
This will reduce costs and simplify the process but is only available to those investors who can demonstrate they are tax compliant. Further frequently asked questions and answers will be published by HMRC to clarify the new procedure.
Andy Cole, head of HMRC’s negotiating team dealing with the arrangements between the UK and Liechtenstein said: ‘Liechtenstein and HMRC are both committed to ensuring UK taxpayers with undisclosed assets are meeting their obligations to the Liechtenstein financial centres and to us, and crucially, that UK taxpayers who need to regularise their taxes are brought back into the tax system. The developments we have announced today will help to deliver on these commitments.’
HMRC says that 1721 individuals have come forward to take advantage of the LDF as at 30 September 2011.