.png)
.png)
HMRC have reminded taxpayers that from 6 April 2011, as announced in the previous government’s final Budget, penalties for offshore non-compliance relating to income tax and capital gains tax will be linked to the tax transparency of the country involved.
Penalties will remain the same for under-declared income and gains from territories with automatic exchange of information on savings with the UK, but for territories that exchange information on request with the UK and least developed countries without information-sharing agreements with the UK, the penalty will be 1.5 times that due under existing rules: up to 150%.
Penalties relating to undeclared income from territories that do not automatically share tax information with the UK will be double that due under the existing rules: up to 200%.
The first self assessment returns to which the penalties would apply are those concerning the 2011/12 tax year.
