The squeeze is gradually tightening on investors who have funds in former tax haven Liechtenstein.
Ann Bibby, partner in the Birmingham office of international accountancy firm Mazars, warned they were likely to be contacted soon to ensure everything had been disclosed to the UK tax authorities.
She said: “Thousands of people are likely to receive letters from their Liechtenstein financial intermediaries over the next few weeks.
“Recipients will have to certify UK tax compliance, or demonstrate they have already disclosed or are in the process of disclosing to HM Revenue and Customs under the Liechtenstein Disclosure facility (LDF). Otherwise the funds have to be transferred out of Liechtenstein. The LDF is very advantageous with limits on penalties and the number of years of back tax which have to be paid.
“While the letter will give up to 18 months to respond it is important that taxpayers act promptly since they may otherwise lose the advantage of the LDF and be subject to higher penalties and more years of tax.
“If you have received one of these letters you need professional advice to help certify that you are UK tax compliant or to understand the impact of making a disclosure to HMRC.”
The LDF was negotiated by HMRC with the Liechtenstein authorities in 2009. It uses information gathered by financial intermediaries managing funds on behalf of UK taxpayers to ensure their tax positions are regulated.
