The disparity in tax rates means that the incorrect declaration of such gains could potentially have resulted in significant underpayments of tax which could also attract penalties and interest charges.
Even where a fund has reporting status, compliance for investors is not straightforward, as there may be income retained in the fund that must be declared on the investor’s tax return in addition to the dividends received.
If you have invested in offshore funds and have any concerns as to whether income and gains have been reported correctly, please fill out the form below to get in contact with a member of the Private Client Team.
Residential properties owned by overseas companies – letters not to be ignored
HMRC is also contacting both owners and occupiers of UK residential property where the registered owner is an offshore company.
The letters separately request detailed information from both the owner and the occupier of these properties and may well cause significant alarm to the occupiers.
It is likely that in the majority of cases the appropriate non-resident landlord registrations will be in place and reporting requirements are already being complied with.
However, it would be unwise for such letters to be ignored. If HMRC does not receive a response, the next move will be to open formal enquiries.
If you have received a letter from HMRC and are uncertain how to respond, please fill out the form below to get in contact with a member of the Private Client Team.