HMRC are to receive information on all bank accounts held by UK residents in the Isle of Man as a result of an agreement between the two governments.
Historically many UK residents have held bank accounts in the Isle of Man, the UK government feels that much of this has been hidden from HMRC and tax evaded. They will now have the information to check against UK tax returns. Where the two do not match up, they will open Tax Enquiries and will seek the unpaid tax, interest and significant penalties. The penalties are likely to be extremely significant and many of the culprits will be left with little or nothing from their offshore funds. There is also the very real danger that HMRC will choose to prosecute.
For anyone with accounts in the Isle of Man, where the source of the capital and annual income have been disclosed to HMRC, there is nothing to worry about, however, if you have not disclosed the existence of your accounts to HMRC, you would be well advised to make a voluntary disclosure as soon as possible. A voluntary disclosure will reduce the level of penalties that HMRC will expect you to pay, it will also mean that HMRC will be much less likely to prosecute you.
If you have any undisclosed accounts, we can help, please contact us as soon as possible and we will arrange to make the disclosure to HMRC on your behalf.