Taxpayers only have one month left to disclose any undeclared offshore tax liabilities to HMRC or risk paying a substantial fine.

The requirement-to-correct (RTC) legislation requires taxpayers to notify the Revenue if money held offshore before 6 April 2017 has not been taxed or reported.

Any outstanding liabilities relating to income tax, capital gains tax and inheritance tax must be reported to HMRC by 30 September 2018.

Thereafter, stringent new penalties ranging from 100% to 200% on the tax owed will be in place under the Revenue's failure-to-correct sanctions.

An additional asset-based penalty of up to 10% of the asset's value would apply in the most serious cases, usually where the liability exceeds £25,000 in any tax year.

Chris Davidson, chairman of the Chartered Institute of Taxation's management of taxes sub-committee, said:

"Tax rules relating to offshore matters can be complicated and anyone who is unsure if they have any undeclared offshore tax liabilities should check their position.

"Anyone who has taken advice in the past about an offshore matter should consider if they need to revisit this advice and, if necessary, obtain a second opinion.

"It is the taxpayer's responsibility to check whether they need to make a disclosure under the requirement to correct or not, and with the deadline approaching fast, time is running out."

Contact us for requirement-to-correct advice.