Over the past 12 months the tax landscape has changed considerably. A number of Agreements between the respective Governments of the Isle of Man and UK have been entered into. In December 2012 the Isle of Man announced it would be entering into closer tax co-operation with the UK via an automatic exchange of information agreement, based on the same principles as those laid down in the US Foreign Account Tax Compliance Act (“FATCA”). The impact of this Agreement is that Boston Limited will need to provide a broader range of information to HMRC in respect of UK resident taxpayers. Details of the Agreement between the UK and the Isle of Man can be found here.
In February this year, in line with this Agreement, the Isle of Man Government entered into a ‘Memorandum of Understanding’ (“MOU”) in relation to co-operation in tax matters. Under this MOU HMRC has agreed to make available a disclosure facility to assist people in complying with their tax obligations. The disclosure facility will be available from 6th April 2013 until 30th September 2016 and may be relevant to any of our clients who have been, or who currently are, tax resident in the UK for any period between 6th April 1999 and 31st December 2013. The disclosure facility allows for the settlement of any tax liabilities with HMRC.
Boston Limited is obliged under the terms of the Agreement to notify all its clients who may be affected by the MOU and who may benefit from the disclosure facility. Whilst we appreciate that for the majority of our clients this notice will not be applicable, we have taken the decision to advise all of our clients about the changes. Further information on the disclosure facility can be found here.
If you have any queries in relation to your own situation please do contact me.