Following an agreement between HM Revenue & Customs (“HMRC”) and the Government of Guernsey, HMRC have agreed to make available a disclosure facility – the “GDF” which allows eligible persons who may have UK tax irregularities to get their past and future tax affairs on the right footing. We are now writing to all our clients to inform them of the GDF.
What is the GDF?
The facility has been introduced to help UK taxpayers with investments in Guernsey to apply the terms of the facility to regularise their UK tax affairs with HMRC. By coming forward under the GDF they may be able to take advantage of a number of special terms.
Why should I make a disclosure?
The GDF has been provided by HMRC, for “relevant persons” with assets or investments in Guernsey, to participate in the GDF to apply the terms of the facility to regularise their UK tax affairs with HMRC.
“relevant person” is defined as:
(a) in respect of a natural person, a person who, in the period commencing on 6 April 1999 and ending on 31 December 2013,
i. has had a beneficial interest in relevant property; and
ii. has been resident in the UK for UK tax purposes, for any part of the period; or
(b) in respect of a legal person, a person that:
i. in the period commencing on 01 April 1999 and ending on 31 December 2013 has had a beneficial interest in relevant property; and
ii. is incorporated in the UK or has been resident in the UK for UK tax purposes in the period referred to in paragraph (i)
“relevant property” is defined as:
(a) an account held with a bank or other financial institution in Guernsey;
(b) an annuity contract or cash value insurance contract issued or maintained by a financial institution in Guernsey or;
(c) a company (including a corporation and institution structured as a corporation as well as a company without legal personality), partnership, foundation, establishment trust, trust enterprise, or other fiduciary entity, estate, cash value insurance contract or annuity contract that is issued, formed, founded, settled, incorporated, administered or managed in Guernsey.
The UK and Guernsey have committed to entering into an agreement which will allow for the automatic exchange of detailed tax information from 2016. If you have outstanding tax liabilities in relation to your Guernsey investments, you can come forward now to clear them up. You can also use the disclosure under the GDF to clear up any other tax liabilities you may have.
When is the GDF available?
The GDF is available from 6 April 2013 until 30 September 2016.
What do I need to do next?
This notice is in no way implying that your tax affairs are not in order. However, if you feel the GDF may be relevant to you, you should obtain your own tax advice and obtain further guidance about eligibility and making a disclosure. The GDF is not available to certain persons, such as those who are already under investigation by HMRC as at 6 April 2013.
Where can I obtain further information?
Further guidance on the GDF about eligibility and making a disclosure, including the full Memorandum Of Understanding between HMRC and the Government of Guernsey and Frequently Asked Questions, is available from the States of Guernsey and HMRC websites:
Alternatively, you can contact HMRC’s Offshore Disclosure Facility Helpdesk:
Specialist Investigations, GDF Team SO694, PO Box 29992, Glasgow, G70 6AB
0300 123 1080 (for calls within the UK)
+44 151 300 2714 or 2731 or 2709 (for calls outside the UK)
This information is provided for general information only, Concept does not provide financial, legal nor tax advice, and nothing in this document should be construed as such. Concept shall not be held responsible for any liability or loss arising directly or indirectly from any reliance placed upon the content of this document. Concept recommends that all individuals should seek their own appropriate advice.