HMRC letters regarding undeclared foreign income, assets or gains - Wright Vigar
 In Advice, Blog, News

Some taxpayers are receiving letters from HM Revenue & Customs suggesting that they may have undeclared foreign income, assets or gains.

These letters have been generated as a result of the information sharing arrangements that HM Revenue & Customs have with most other countries around the world. Where the information received from the overseas tax authority appears not to match with what HM Revenue & Customs hold, a letter is generated asking the client to check their tax position.

The letters ask that taxpayers either sign a declaration to confirm that their tax affairs are up to date, or to otherwise notify them of their intention to correct any errors and omissions. Tax declarations should always be approached with caution. Making a false declaration turns what would otherwise be a civil matter into a criminal one.

If tax has been underpaid in respect of overseas income or gains then it may be subject to harsher penalties. If the underpaid tax relates to periods before 5 April 2017 then penalties can start at a minimum of 100%. It is therefore important that taxpayers are confident that all of their UK tax responsibilities have been met in respect of their overseas income and gains.

We are experienced in dealing with these sorts of enquiries on behalf of taxpayers. We can review your overseas tax affairs, advise you if we think that any of your UK tax responsibilities have not been met, and help you to put things right.

If you are concerned about whether your UK tax affairs are up to date then please feel free to contact your usual  Wright Vigar contact or and we will be happy to help.

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