Budget 2009 - NDO

The Budget Report (p.108) signifies the upcoming launch of another disclosure facility, the snazzily titled New Disclosure Opportunity, aimed primarily at those who have unpaid taxes connected with non UK bank acounts.  As with previous Offshore Discloure Facility, we can expect the new facility to be available to those with onshore liabilities also. 

The NDO will need to be better advertised if it is to garner more than the paltry £400M reported to have been collected in with the ODF, but we expect that the political climate will ensure more resources are devoted to the NDO and that it will, indeed, be heavily trailed.  It is noteworthy that, whilst we have yet to be told when this new initiative will commence, it has been announced that it will end in March 2010 and, therefore, coincide the beginning of the new policy of publicly shaming defaulters. 

March 2010 will also now see the end of the short-lived ability to roll-over gains on the disposal of non UK, EEA holiday lets.  Anecdotal evidence suggests that significant sums have been hidden away by UK taxpayers investing into such properties over the past two decades, and with the  rationale for the extension of the FHL rules having a dubious quality to it, the devious minded might have cause to question whether HMRC are going to be making an effort in this direction also.

Comments

[New Disclosure Opportunity]

Those individuals choosing to participate in the scheme will be expected to settle the tax owed, interest thereon and a reduced penalty by 31 March 2010. For these individuals there is a high chance HMRC will accept the figures and move on, so peace of mind for these individuals could be achieved by taking advantage of this opportunity. However, those individuals choosing not to avail themselves of the scheme risk detailed investigations and possible prosecution.