Welsh accountancy firm Bevan Buckland, has announced a rise in enquiries following the passing of new legislation around offshore assets.
The rise in enquiries in down to new legislation, which was launched in October 2018, it requires UK taxpayers to notify HMRC of offshore assets relating to income, capital gains or heritance taxes.
The tax authority also signed up to the Common Reporting Standard (CRS), which will enhance HMRC’s ability to detect offshore non-compliance and it is in taxpayers’ interests to correct any non-compliance before that data is received.
Lee Bradley, tax director at Bevan Buckland said: “Some taxpayers may be unsure of whether they are required to declare overseas financial interests. Under the rules, actions like renting out a property abroad, transferring income and assets from one country to another, or even renting out a UK property when living abroad could mean taxpayers face a tax bill in the UK.
“The most common reasons for declaring offshore tax are in relation to foreign property, investment income and moving money into the UK from abroad. If taxpayers are confident that their tax affairs are in order, then they do not need to worry. If anyone is unsure, HMRC recommends they seek advice from a professional tax adviser or agent like ourselves.”