LDF Update

Liechtenstein and the UK have signed a fourth joint statement updating the Liechtenstein Disclosure Facility (LDF). Our previous article here summarises some of the detail of the LDF, and little has changed in this regard. The key announcements are:

• a ‘Single Charge Rate’ (SCR) of 50% to reflect the top rate of UK tax for the 2011-12 and 2012-13 tax years; and
• some specific limitations on an individual’s eligibility to make a disclosure under the LDF, or to access the some of its terms.

Generally, however, HMRC seem pleased with how the Facility has been working to date: 5,800 people and companies have now registered to participate in the LDF, more than 5,200 disclosures have been received, and the LDF has raised more than £1 billion from settled cases and payments on account.

The LDF is set to run until 2016 and in many cases continues to represent a efficient route to correct a UK tax irregularity. If you are concerned about a potentially undisclosed UK tax liability, please contact us to speak to an adviser in this regard.