Requirement to Correct

The Requirement to Correct (RTC) legislation is HMRC’s last attempt to coerce taxpayers, with links to offshore assets, to ensure that their historic tax affairs are correct.

From April 2017 the new legislation dictates that any entity in the world has an obligation to identify and disclose any historic non-disclosure relating to Income Tax, Capital Gains Tax and Inheritance Tax. Failure to correct will mean penalties of up to 300% of the undeclared tax, potential asset based penalty and potential name and shaming.

The closing of Liechtenstein Disclosure Facility brought to an end nearly 10 years of disclosure facilities linked to offshore assets. It is HMRC’s belief that those individuals, and entities, who had historic tax irregularities, linked to offshore assets, have now rectified the position.

With the introduction of the Requirement to Correct (RTC) legislation, HMRC have ensured that those who have not rectified the position will face significantly higher penalties.

Please download our Briefing Note for further information.

If you are affected by the changes outlined, please contact Lancaster Knox for advice and guidance on the options available.

Download a PDF of the full resource