In November 2013, an automatic tax information exchange agreement between the UK and the Cayman Islands was signed. Since then the HMRC has contacted UK residents with bank accounts held in the Cayman Islands.
The main purpose of the letters are to encourage UK taxpayers to disclose any previously undeclared income and capital gains. These letters come with a caveat that those who do not come forward could be the target of tax investigations in the future.
Taxpayers with assets concealed on Cayman have until September 2016 to disclose details to HMRC and pay any tax owed. Depending on their circumstances, in addition to interest, penalties will be charged at between 10% and 20%.
For the financial year 2014 onwards HMRC will be provided with financial information on UK taxpayers with accounts in the Cayman Islands. From 2016, HMRC will then be provided access to companies and trusts registered on the Island
If you receive such a letter, please call any one of Edwin Coe’s offshore taxation specialists on any of the numbers provided below. We can provide free and impartial advice from which you can make an informed decision as to how a response to HMRC should be prepared.
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Please note that this blog is provided for general information only. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content of this blog.
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