5. Crackdown on offshore income tax avoidance
The government appears to be paranoid about the idea of people moving their money offshore, getting tax-free interest or returns, and not declaring them for tax.
If you are a UK resident, you must pay tax on all your income, wherever it originates, especially if it is paid gross.
In the Autumn Statement there was the announcement of a new law that means HMRC could possibly treat people who do not declare overseas taxes as criminals. Failing that, there are hefty penalties to pay.
So how can that affect you? Well, if you have money in an offshore fund, an overseas bank account or even a rented holiday home, make sure you are scrupulous about declaring that income and paying tax on it.
Otherwise you could end up in all sorts of trouble when HMRC find out about it – and nowadays, they have all sorts of ways of doing that.
Get in touch if this is of concern to you.
The information regarding taxation is based on our understanding of law, HM Revenue & Customs practice and current legislation, which may be altered and depends on the individual financial circumstances of the investor.