Originally, HMRC announced their expectation to raise £1 billion by the end of the HMRC tax amnesty in 2015 but, after what they described as an “encouraging uptake”, this expectation was increased to £3 billion.
The facility allows wealthy UK residents who are hiding money abroad to disclose tax irregularities with immunity from prosecution and promises of lower HMRC tax penalties, attracting a total of 1,351 taxpayers signing up for the amnesty by 31st March 2010.
As promising as £140 million may sound, it seems highly unlikely that HMRC will raise the £3bn they are so strongly hoping for.
It has been suggested that the possibility of a new tax agreement between the UK and Switzerland could be causing UK taxpayers with money hidden abroad to delay signing up to the LDF until the details of the UK/Swiss deal are finalised and published.
It is believed that some Swiss bankers have been advising their clients to hold off from signing up to the terms of the Liechtenstein Disclosure Facility as their deal with HMRC may have even more favourable terms.
As a result of this, there have been rumours circulating that HMRC are even considering extending the Liechtenstein Disclosure Facility to 2016, or maybe even 2017, in order to compensate for the seemingly disappointing uptake.
If this happens it is quite possible that HMRC may reach their goal of raising £3 billion, albeit by an extended time frame.
However, HMRC have themselves given no indication of any disappointment in the performance of the LDF by stating:
“We are delighted with the way the LDF is performing. It is bringing in significant amounts of tax that might otherwise be lost to the country. The facility runs until 2014/15 – and our experience is that many of those with disclosures to make leave it until the last minute”.
KinsellaTax would be delighted to arrange for a Liechtenstein Disclosure Facility for ANYONE who has an overseas bank account, whether it is in Liechtenstein or not.
For more information on any of the specialist tax investigation services we offer pick up the telephone NOW and call 0800 471 4546 or click here to fill in a tax enquiry form.