Individuals wishing to take advantage of the Liechtenstein Disclosure Facility (LDF) should be aware of a change in the rules which came into effect on 1st September, and could make the process more difficult.
Under the current LDF agreement, individuals with undeclared tax liabilities held in a Liechtenstein-based asset, such as a bank account, can make a disclosure in exchange for favourable terms from HM Revenue & Customs (HMRC). This disclosure opportunity is open until 5th April 2016.
However, the Liechtenstein government has enacted an amendment to the existing UK Transparency and Information Exchange Agreement (TIEA). Consequently, individuals wishing to acquire a Liechtenstein asset in order to qualify for the beneficial terms of the LDF can only do so if the bank account in question houses no more than the lower 20 percent of the individual’s worldwide bankable assets or three million Swiss francs.
If you would like to make use of the LDF or another method of disclosure, please contact us for further advice.