New agreement between UK and Liechtenstein

HMRC announce the launch of a Liechtenstein specific disclosure facility off the back of a new exchange of information treaty. The terms of the offer from HMRC are very generous, far more so that those generally available under the New Disclosure Opportunity to those with undeclared liabilities relating to offshore assets and accounts. Tax only need be paid on liabilities from 5/4/1999 onwards (10 rather than the normal 20 years), penalties are fixed at 10% in most cases and the opportunity remains open until 2015. The generosity of this scheme probably reflects the difficulty that HMRC has in accessing Liechtenstein bank account information.

Account holders with undisclosed UK tax liabilities would be foolish to ignore this opportunity to come clean and settle their dues. Anyone who does will have to close their Liechtenstein accounts, face the prospect of being found by HMRC and suffer larger tax charges, higher penalties, possible prosecution and/or naming and shaming. Emotionally this may be a difficult decision to make but logically it is very clear cut - disclose now.