Tax Investigation Specialists

WLHTax - Liechtenstein Disclosure Facility

Key Features

  • The LDF gives taxpayers, which includes individuals, companies, partnerships and trusts the opportunity to voluntarily come forward and make a disclosure to HMRC.
  • Tax is only recovered from 6 April 1999 onwards.
  • The penalty is fixed at 10% to 5 April 2009 and 20% for subsequent years.
  • HMRC will also offer a guarantee of immunity from prosecution for tax offences and there will be no “naming and shaming”. This is where HMRC routinely publish the names of tax evaders.
  • A simplified composite tax rate option (CRO) with the potential for significant inheritance tax savings.
  • An efficient disclosure process with no requirement to ever meet with HMRC.

The clear and distinct advantage in utilising the LDF to clear up any tax issues is that HMRC usually has the power to collect unpaid taxes for a twenty year period. Under the LDF, HMRC can only recover tax from 6 April 1999 onwards. Therefore, this is an excellent opportunity for taxpayers to get their UK tax affairs fully up to date and limit the number of years for which HMRC will recover unpaid taxes.

The fundamental feature of the LDF is, that as well as providing those individuals with undisclosed tax liabilities connected with existing assets in Liechtenstein the opportunity to regularise their affairs on favourable terms, it also provides the same opportunity for individuals with overseas assets outside of Liechtenstein. Please refer to the do I qualify for the LDF section for more information.

Call us now

Please call WLH Tax on +44 (0) 207 491 9690 or +44 (0) 207 491 9696 if you wish to discuss the LDF in greater detail.