New legislation to declare income and assets abroad
On 1 October 2018 the British HM Revenue and Customs (HMRC) department introduced a new legislation called “Requirement to Correct (RTC)”. This will require UK taxpayers declare their foreign income and assets to the HMRC .
Therefore, from the 1st of October 2018, for those who fail to pay the relevant tax by this date, there will be higher penalties on their foreign income and assets.
About offshore income and assets
As the HMRC defines:
“Income is considered to be an offshore income as it comes from a territory outside the United Kingdom, which includes:
- Interest from overseas bank and building society accounts
- Dividends and interest from overseas companies
- Rent from overseas properties or if you rent out your UK property whilst living in another country
- Wages, benefits or royalties earned outside of the UK”.
Included taxes
The RTC legislation would apply to:
- Income tax
- Capital gains tax
- Inheritance tax
Some offshore activities that may involve paying tax
These activities must be declared to HMRC:
- Renting property abroad
- Transferring income or assets from one country to another (including Channel Islands, Isle of Man, the EU or any other
What should you do?
In case there is UK tax due on foreign income or gains, or tax on UK income transferred abroad, you should tell the HMRC .
To get 90 additional days you can use the HMRC’S Worldwide Disclosure Facility.
To read more about the new legislation you can take a look at the official guidance or for a more in-depth explanation you can download the official brochure.
Category : Uncategorized
