Autumn Statement 2016: Requirement to correct (RTC)

In Budget 2016, the Government announced that it would consult on a new legal requirement for individuals to correct a past failure to pay UK tax on offshore interests by 30 September 2018, with new sanctions for those who fail to do so.

Following consultation, HMRC have confirmed that the RTC will come into force from April 2017 and run until 30 September 2018, when the Common Reporting Standard will come into force.

Anyone who is aware that they have historical undeclared tax liabilities linked to offshore assets will have a legal requirement to correct their affairs before 30 September 2018. Failure to do so will result in higher tax-geared penalties, dependent on the jurisdiction in which the assets were held.