HMRC are currently writing to individuals who they think may owe UK tax due to ‘offshore’ income and/or gains. This includes individuals who have both UK and India tax affairs. If you have received this letter, please don’t panic help is at hand.
How does this impact upon you?
Understanding the UK tax implications of income arising overseas, including consideration of any reliefs that may be available, can often be complex and failing to seek appropriate advice can be costly.
We advise all UK resident individuals with bank accounts in India (or other overseas countries) to seek professional UK tax advice so that they can fully understand their UK position.
Where a disclosure to HMRC is required in respect of historic UK tax liabilities individuals can use make use of HMRC’s Worldwide Disclosure Facility.
Anyone coming forward on a voluntary basis to made a disclosure can reduce their exposure to penalties. A taxpayer can come forward voluntarily under the Requirement to Correct Regime.
Individuals who fail to correct their UK tax position and are who are then approached by HMRC in respect of undisclosed overseas income, (for example linked to India), could be subject to penalties of at least 150%.
If you would like to speak to a member of Gravita’s tax team in respect of declaring an overseas income and/or gain, please contact us today.