HMRC is urging UK taxpayers to make sure they have declared foreign income before 30 September.
Under the Requirement To Correct (RTC) legislation, undisclosed foreign income or profits on offshore assets could be subject to tax penalties. After notifying HMRC of their intention to make a declaration, taxpayers will have up to 90 days to make a full disclosure and pay over any tax owed.
The legislation is a legal requirement and creates an obligation for anyone who has undeclared UK tax liabilities that involve offshore matters to ensure they are disclosed to HMRC by the 30 September deadline.
The legislation covers income tax, capital gains tax and inheritance tax. New penalties will apply from 1 October to those who fail to correct an offshore-related liability unless they can show a reasonable excuse.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.