Tax Amnesty discussion

Cook_County

dejongj wrote: »

Do you know whether they have powers to get bank details from any bank in the world even when they have no links to the UK?

For example lets assume someone I know has got a deposit account in Luxembourg opened since he was borne with money deposited in cash on a regular basis by non UK residents and never has performed any kind of electronic transfer to the UK or address registration in the UK....Yet that person resides in the UK....Would they still have access to that kind of information?

Such income is reportable on a UK return whether or not brought to the UK (unless the recipient is not a UK domiciliary) so the question is otiose.

Cook_County

alison wrote: »

I'm really muddled now! I have had a holiday home in Spain for 9 years and have always paid the taxes over there which were due, including implied rentals, although we never did rent. Unfortunately my husband died and I am now considering advertising the apartment for rent, so I can pay for it's upkeep.

I have spoken to several people. Some say they declare their income and pay tax in the UK, not in Spain. Other people have told me that I have to pay in Spain. It would be far easier for me to do it in the UK as I can understand the forms!!

What should I do?

Alison - if you are UK resident, ordinarily resident and domiciled the income is reportable on your UK tax returns, subject to credit for Spanish tax on the doubly taxed income.

If "some people" are choosing to evade Spanish taxes then I would not suggest you follow them! You need to file in both countries.

Cook_County

yellowtigeruk wrote: »

I have owned a house in Spain for 4 years and must admit the tax payment seemed confusing. I have paid 'wealth tax' in Spain, this has been sorted out by my solicitor over there and is a tax on the value of the property. I understood tax was to be paid in the country in which it is earnt so as all my bookings have been taken in UK, and paid for in sterling I have given my accountant details of income and expenditure and he has worked out what I have to pay. I can't be 100% sure that what I am doing is correct but it seems impossible to find exact advice.

You are correct. Spanish rental income is taxed in Spain, the UK also taxes the income (because you are resident, ordinarily resident and domiciled in the UK) and then gives credit for Spanish tax on doubly taxed income.

Cook_County

donmac wrote: »

The tax amnesty doesn't affect the tens of thousands of people living in the UK who were not born here or whose fathers weren't born here.

They have a permanent tax amnesty, being able to avoid millions in tax and capital gains tax which *we* have to pay.

These are not just millionaires making gifts to political parties, but in fact anyone who can claim to be "resident but not domiciled in the UK" - accountants, pharmacists, doctors, convenience store owners.

There were articles in “The Observer” about this before the budget, lobbying the Chancellor to close the loophole (which he didn’t), and I have a file of articles about it going back some years.

This is so blatant there’s even been a small ad in “Private Eye” magazine from a firm of accountants specialising in offering this tax avoidance method.

The fact is that the Chancellor and the other political parties won't do anything about closing this tax loophole because they get a lot of it in contributions to their political campaigns.

If you are unhappy with the UKs fiscal policy that attracts people and capital to the UK and generates jobs and revenue for UK Treasury then you have the democratic right/duty to lobby your MP and vote for a party with different tax policies.

The UK has a special regime to attract foreign nationals here, so do Sweden, Netherlands, Belgium, Japan etc etc. This is hardly a money-saving topic however.

Cook_County

heleen wrote: »

Just looking for people's view on my likelihood of getting caught with teh following:

I am non domiled. In 1999 /2000 I was paid by my employer offshore for time spent working abroad. This is a legit tax avoidance trick. It was about £6000 I think. Can't really remember.

Then in 2001 I bought a house in the UK and transfered the money - all but £100 - into the UK. I didn't think about it until about a year or so later when I realised I wasn't allowed to do that wihtout paying tax. What I don't know is whether I wasn't allowed to bring in the total amount without paying tax or just the interest so I don't know how big my boo-boo is.

The account lay dormant for 6 years and was recently closed down. The £100 was paid into my UK bank account. Pat of this of course was interest.

So I know I've been a bad girl and am now worried that I woudl have to pay 40% tax on the entire amount, which could not come at a worse time as I don't have it!

So my questions are:
do I owe tax on all the amount or just the interest?
what are the chances that I will be investigated as it is more than 5 years ago and I am non-domiciled and teh accoutn doesn't exist anymore. Slight fear that the £100 transfer due to closure of account might trigger something.

If I put the £100 into my 2006-2007 return, which I am happy to do, will that waken sleeping dogs?

Any thoughts welcome!

Heleen. Your earnings brought to the UK should almost certainly have been declared when brought to the UK. You should almost certainly take advantage of the current amnesty to disclose the remittance of £6,000 to the UK, pay tax plus interest/penalties and sleep better after doing so.

Sterghios

I am a Greek national (member of EU for those unaware) living in the UK for the last decade. In the meantime I have had businesses in Greece, bank accounts, stocks... The greek taxman receives his tax from all these activities. The english taxman has never received information about it.

Every single time I discuss this with the taxman in either countries I hear a different opinion, with the exception that the greek taxman insists that income in Greece is to be declared in Greece.

What should I do guys? Declare the income in the UK too? Why should I pay tax twice?

S

confused2

We are retired have a house in the UK and one in spain (which was in inherited). Neither house is rented. We live mainly in the UK.
We do not pay income tax as we are retired.

What would be expected to pay the uk government?

heleen

Cook_County wrote: »

Heleen. Your earnings brought to the UK should almost certainly have been declared when brought to the UK. You should almost certainly take advantage of the current amnesty to disclose the remittance of £6,000 to the UK, pay tax plus interest/penalties and sleep better after doing so.

Thanks Cook-County (although grumble grumble it's bad news)

Do you know how I report the income that was brought into the UK this tax year (£285) on my self -assessment? Is it as income or is there a special form about offshore accounts?

Thanks

xray_3

What happens if you had an account yet closed it in, say, 2002?

Cook_County

Sterghios wrote: »

I am a Greek national (member of EU for those unaware) living in the UK for the last decade. In the meantime I have had businesses in Greece, bank accounts, stocks... The greek taxman receives his tax from all these activities. The english taxman has never received information about it.

Every single time I discuss this with the taxman in either countries I hear a different opinion, with the exception that the greek taxman insists that income in Greece is to be declared in Greece.

What should I do guys? Declare the income in the UK too? Why should I pay tax twice?

S

You do not pay tax twice. Assuming you are not UK domiciled, claiming this on your UK tax return, claiming on your UK tax returns to be taxable on the remittance basis, and completing employment pages for your Greek businesses then there is no UK tax payable.

I have purposefully simplified this response. You need professional advice.