As a result of an agreement between the UK and Lichtenstein in August 2009 any UK taxpayer who has an account in Lichtenstein will be contacted by their bank. The letters from the Lichtenstein Financial Intermediary will require UK taxpayers who have undeclared assets in accounts in Lichtenstein to show that they are complying with their UK tax obligations, that they do not have a UK tax liability or to make a disclosure under the  Liechtenstein Disclosure Facility (LDF) being run by HM Revenue & Customs (HMRC). If the UK taxpayer does not comply with this their account will be closed.

The LDF offers reduced penalties to individuals with undeclared income or gains if they make full disclosure to HMRC. There may also be inheritance tax savings if assets have been inherited prior to 1999. If you have any offshore accounts in other jurisdictions you may be able to make disclosure under the LDF by transferring assets to Lichtenstein.

For further information please contact Amanda Scally at Paris Smith on 023 8048 2293.

Tags: HM Revenue & Customs, LDF, Lichtenstein disclosure facility, UK tax liability, UK taxpayer, undeclared offshore income