Offshore disclosure facilities—outline
Offshore disclosure facilities—outline

The following Private Client guidance note provides comprehensive and up to date legal information covering:

  • Offshore disclosure facilities—outline
  • Offshore Disclosure Facility
  • New Disclosure Opportunity
  • Liechtenstein Disclosure Facility
  • The UK-Switzerland Tax Co-operation Agreement
  • Crown Dependency Disclosure Facilities
  • Worldwide Disclosure Facility

Since 2007, HMRC has offered a series of disclosure facilities to individuals with offshore investments. These facilities provide a limited opportunity for individuals to come forward voluntarily to clean up their tax affairs with lower penalties than will be suffered by those who do not come forward and are later caught by HMRC. This Practice Note provides a brief introduction to the:

  1. Offshore Disclosure Facility (ODF), which closed in 2007

  2. New Disclosure Opportunity (NDO), which closed in 2010

  3. Liechtenstein Disclosure Facility (LDF), which closed in 2015

  4. UK-Swiss Tax Co-operation Agreement (Agreement) which closed on 31 December 2016

  5. Jersey, Guernsey and Isle of Man Disclosure Facilities (Crown Dependency Disclosure Facilities), which closed in 2015

  6. Worldwide Disclosure Facility (WDF)

Offshore Disclosure Facility

The ODF was launched by HMRC in April 2007 to coincide with HMRC obtaining information about overseas account holders from five major clearing banks using its powers under section 20(8A) of the Taxes Management Act 1970 (since replaced by Schedule 36, paragraph 5 to the Finance Act 2008). The ODF provided the opportunity for taxpayers with offshore accounts to disclose any income and gains not previously included in tax returns. In return for a full disclosure of undeclared tax liabilities for the last 20 years and payment of the tax and interest due, taxpayers received a fixed penalty of 10%