Crown Dependencies Disclosure Facilities available to bring UK tax affairs up to date.

As you may already be aware, UK HM Revenue & Customs announced in early 2013 a new agreement with Jersey, Guernsey, and the Isle of Man (the Crown Dependencies) to improve international tax compliance and the provision of a Disclosure Facility to assist taxpayers to regularise their tax affairs.

HM Revenue & Customs is offering a Disclosure Facility, running from 6 April 2013 to 30 September 2016. The Disclosure Facility provides relevant persons with an opportunity to bring their UK tax affairs up to date, correct any irregularities, make a full disclosure of outstanding liabilities and pay any amounts due.

The Disclosure Facility is open to any individual resident in the UK for UK tax purposes between 6 April 1999 and 31 December 2013, or a legal person incorporated in the UK, or resident in the UK for UK tax purposes between 1 April 1999 and 31 December 2013. The Disclosure Facility is not available to anyone under investigation by HMRC as at 6 April 2013.

Further information is available from:

  • The HM Revenue & Customs website, which also contains examples of Frequently Asked Questions 
  • HM Revenue & Customs’ “Disclosure Facility Helpdesk” on 0300 123 1080*

Questions and Answers

Q1. What are the Crown Dependencies Disclosure Facilities?
HM Revenue & Customs and the Crown Dependencies (Jersey, Guernsey and Isle of Man) announced in early 2013 an agreement to provide greater automatic exchange of information to improve international tax compliance. As part of this agreement, the Crown Dependencies Governments entered into a Memorandum of Understanding with HM Revenue & Customs under which:

• HM Revenue & Customs made available Disclosure Facilities to provide an opportunity for eligible persons with assets or investments including cash balances held in accounts in the Crown Dependencies and other overseas jurisdictions to bring their UK tax affairs up to date.

• The Governments of the Crown Dependencies require Financial Intermediaries to contact relevant persons to advise them of the Disclosure Facilities.

The Crown Dependencies Disclosure Facilities are available from 6 April 2013 until 30 September 2016. Persons eligible to participate in the Disclosure Facilities will be able to apply the terms of the facility to regularise their UK tax affairs with HM Revenue & Customs. You may wish to consult your financial advisor about this.

As part of the agreement to provide greater automatic exchange of information to improve international tax compliance, Financial Intermediaries in the UK and Crown Dependencies (such as banks) will be required to report information about clients resident in the UK. The first exchange of information will be in 2016 (for details of 2014 and 2015) and will be annual thereafter.

Q2.  What is Barclays obligation under Crown Dependencies Disclosure Facilities?
We are obliged under the laws enacted in the Crown Dependencies in relation to the Memorandum of Understanding between the Crown Dependencies Governments and HM Revenue & Customs to inform you of the Disclosure Facility. This facility has been introduced by HM Revenue & Customs to help UK taxpayers with investments or assets including cash balances held in accounts in Jersey, Guernsey or the Isle of Man who may have irregularities in respect of their UK tax affairs, to approach HM Revenue & Customs and put their past and future tax affairs in order.

Q3. Who does the Disclosure Facility apply to?
The Disclosure Facility provides an opportunity for “relevant persons” with assets or investments including cash balances in accounts in Guernsey, Jersey or the Isle of Man to bring their UK tax affairs up to date and make a full disclosure of outstanding liabilities and pay any amount due. A “relevant person” is defined as an individual resident in the UK for UK tax purposes between 6 April 1999 and 31 December 2013 or a legal person incorporated in the UK or resident in the UK for UK tax purposes between 1 April 1999 and 31 December 2013. For more details refer to the HM Revenue & Customs website

Q4. What action do I need to take if I think that the Disclosure Facility applies to me?
If you think this may be relevant to you, it is important to obtain further guidance on the Disclosure Facility about eligibility and making a disclosure. Further information, including the full Memorandum of Understanding and Frequently Asked Questions, is available from the HM Revenue & Customs website. Alternatively you can contact HM Revenue & Customs Offshore Disclosure Facility Helpdesk on 0300 123 1080* (If you’re calling from abroad please telephone +44 151 300 2714, +44 151 300 2731, +44 151 300 2709).

Q5. I don’t think that the Disclosure Facility applies to me. What action should I take?
If you don’t think that the Disclosure Facility applies to you then you do not need to take any action.

Q6. Why is Barclays going to provide information to local tax offices regarding investments and assets including cash balances that Clients hold in Jersey, Guernsey or the Isle of Man?
We are required to do so under the agreements made between the Crown Dependencies Governments and HM Revenue & Customs to provide automatic exchange of information to improve international tax compliance. Under this agreement, Financial Intermediaries in the UK and Crown Dependencies, such as banks, will be required to report information about their clients who are resident in the UK. The first exchange of information will be in 2016 (reporting details for 2014 and 2015) and will be annual thereafter.

Q7.How long is the Disclosure Facility available for?
The Disclosure Facility runs from 6 April 2013 until 30 September 2016.

Q8. Which tax years does the Disclosure Facility cover?
The Disclosure Facility covers the period between 6 April 1999 and 31 December 2013 for individuals and 1 April 1999 and 31 December 2013 for legal persons.

Q9. Is there anyone who will not be able to use the Disclosure Facility?
Yes the Disclosure Facility is not available to people already under investigation by HM Revenue & Customs as at 6 April 2013. Refer to the HM Revenue & Customs website for further details.

Q10. When will Barclays start providing information to local tax offices regarding taxable assets that Clients hold in Jersey, Guernsey and the Isle of Man?
The reporting to Crown Dependencies tax offices for later exchange to HM Revenue & Customs will start in 2016 for 2014 balances and 2015 balances and income, then will be annually thereafter.

Q11. Who should I contact to obtain advice?
Please seek advice regarding the Disclosure Facility from a tax professional.

Q12. Where can I get more information about the Disclosure Facility?
Further guidance on the Disclosure Facility about eligibility and making a disclosure, including the full Memorandum of Understanding and Frequently Asked Questions, is available from the HM Revenue & Customs website. Alternatively you can contact HM Revenue & Customs “Disclosure Facility Helpdesk” on 0300 123 1080* (If you’re calling from abroad please telephone +44 151 300 2714, +44 151 300 2731, +44 151 300 2709).

HMRC Disclosure Facility Helpdesk

Call

0300 123 1080*