Offshore penalties to come into force on 1 April

By Steven Pinhey, Head of Tax Disputes and Resolution
stevenpinhey@lubbockfine.co.uk
020 7490 7766

With the lead up to the Budget last week, it would have been easy to overlook three Statutory Instruments that were published at the beginning of the month stating the date that various offshore regulations will come into force as 1 April 2017. These regulations are part of the Revenue’s Offshore Evasion Strategy which was first introduced in 2009 and continues to grow and develop..

The three regulations are:

  1. Regulations appoint 1 April 2017 as the date that asset-based penalties for serious inaccuracies or failures in relation to offshore matters and transfers come into force.  For Income Tax and Capital Gains Tax purposes, the changes have effect from 6 April 2016 and for Inheritance Tax they apply to transfers of value made on or after 1 April 2017.
  2. Regulations appoint that from 1 April 2017 the Revenue has been given the power to publish information about persons subject to ‘relevant tax penalties’. ‘Relevant tax penalties’ will now include penalties relating to offshore matters and offshore transfers.
  3. Regulations appoint 1 April 2017 as the date on which the extension of the offshore penalty regime comes into force in relation to offshore transfers. For Income Tax and Capital Gains Tax purposes, the changes have effect from 6 April 2016 and for Inheritance Tax they apply to transfers of value made on or after 1 April 2017.

The Revenue is determined to stamp out offshore avoidance and evasion and these penalties and ‘naming and shaming’ provisions will strengthen an already impressive list of powers and deterrents.

If you have an offshore matter which you are concerned about, our Head of Tax Disputes and Resolution, Steven Pinhey would be happy to talk through the potential tax issues and the options available to you. Steven Pinhey can be contacted on 020 7490 7766 or email stevenpinhey@lubbockfine.co.uk.

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