Posted by James Pearson on 09 Mar 2018

Overseas Tax Disclosure Deadline Approaching

Taxpayers you should be aware of the overseas tax disclosure deadline approaching.  Taxpayers who know or suspect that they have unpaid income tax, capital gains tax and inheritance tax relating to overseas assets, income or activities need to act before the deadline of 30 September 2018 to avoid incurring much higher penalties for non-compliance.

HMRC is reminding taxpayers that under the new Requirement to Correct (RTC) rules, taxpayers are required to make a disclosure to HMRC of unpaid tax on assets, income and activities in other countries and transfers from the UK to other countries. The deadline for making this disclosure is 30 September 2018.

There is no minimum level cut-off point so anyone with unpaid offshore tax will need to make a disclosure. HMRC may be able to look back 20 years.

The minimum penalty for failing to meet the deadline of 30 September 2018 will be at least 100% of the tax owed and could be up to 250% of the tax, depending on the facts of each case. Some examples of how the RTC rules could affect taxpayers are:

  • Taxpayers who have rented out a holiday home in another country and failed to declare the income;
  • Taxpayers who have moved to the UK from abroad and have assets or income in their country of origin;
    Companies that pay income tax (e.g. as non-resident landlords);
  • Trustees, settlors and beneficiaries of trusts with overseas interests;
  • Taxpayers with offshore assets should all check their position and determine whether a disclosure is required prior to 30 September 2018.

The Common Reporting Standard (CRS) system introduced from 2017 means that HMRC now has access to taxpayer information from over 100 countries worldwide, making it easier to trace where UK taxpayers have overseas tax liabilities;

Determining whether a disclosure is required and the extent of the liability is complex. If you think you may have undisclosed tax on your UK assets you should act sooner rather than later to ensure that you can meet the deadline and avoid punitive penalties on the disclosure.

If you would like any advice regarding the overseas tax disclosure deadline approaching or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or


See also…

The IRS announces efforts to help “delinquent” US Taxpayers

Top 10 Expat Tax Tips for Individuals Moving to the UK

Overseas Pension Changes from 6 April 2017

Expatriate Tax Services

Overseas Workday Relief (OWR)

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