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Where Taxpayers and Advisers Meet

letter about foreign income and gains

riccardob
Posts: 92
Joined: Sun May 29, 2011 10:02 am

letter about foreign income and gains

Postby riccardob » Thu Jul 25, 2019 1:57 pm

Hello,

I have received a letter asking me to declare one of two things:

a) either declare now foreign income and gains under the disclosure regimen. a tax adviser can advise.

or

b) I don't have to declare anything new as I have already taken care of this.

The letter also refers to revised guidance

Please note that I have had foreign income declared on my tax returns for the past seven years.

Is this something to worry about?

Or is it an automated letter they send out to those returns which have a record of foreign income?

Regards,

wamstax
Posts: 1869
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: letter about foreign income and gains

Postby wamstax » Thu Jul 25, 2019 2:31 pm

Hi There

Does it have a certificate requiring you to certify that your tax returns are correct and that you have nothing to disclose? If so it could be a generic letter based on information received by HMRC under the "global" common reporting standards.

You would also have to check that you did not have any " requirement to correct" before 30th September 2018 (yes 2018) in respect to any arrangements that had been put in place and on which you might have previously received advice that matters did not require to be disclosed to HMRC etc etc. Basically anybody that was involved or instrumental in setting up any offshore arrangements and previously gave you advice that everything was in order could not be relied upon to give you a reasonable belief that there was for example no or minimal UK tax liability. Such advisers would be disqualified advice and you would need to get a second unrelated or uninterested party opinion to confirm or revise any previous advice and belief.
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

Jholm
Posts: 95
Joined: Mon Mar 11, 2019 4:22 pm

Re: letter about foreign income and gains

Postby Jholm » Thu Jul 25, 2019 2:32 pm

HMRC have sent a lot of letters like this to people who either have or who they believe have foreign income. If you have declared everything that would be taxable, then no action required.

riccardob
Posts: 92
Joined: Sun May 29, 2011 10:02 am

Re: letter about foreign income and gains

Postby riccardob » Thu Jul 25, 2019 3:19 pm

HMRC have sent a lot of letters like this to people who either have or who they believe have foreign income. If you have declared everything that would be taxable, then no action required.
Thanks Jolhm.

I guess my question is would they send this letter to anyone or do they send it because they know the return does not tally with their data?
To my knowledge I have declared everything but I cannot discount a mistake 100%.

riccardob
Posts: 92
Joined: Sun May 29, 2011 10:02 am

Re: letter about foreign income and gains

Postby riccardob » Thu Jul 25, 2019 3:22 pm

Hi There

Does it have a certificate requiring you to certify that your tax returns are correct and that you have nothing to disclose? If so it could be a generic letter based on information received by HMRC under the "global" common reporting standards.

You would also have to check that you did not have any " requirement to correct" before 30th September 2018 (yes 2018) in respect to any arrangements that had been put in place and on which you might have previously received advice that matters did not require to be disclosed to HMRC etc etc. Basically anybody that was involved or instrumental in setting up any offshore arrangements and previously gave you advice that everything was in order could not be relied upon to give you a reasonable belief that there was for example no or minimal UK tax liability. Such advisers would be disqualified advice and you would need to get a second unrelated or uninterested party opinion to confirm or revise any previous advice and belief.
Hello Wamstax,

Basically I have 100k euro gifted from my father since 2012. I have declared the income since but I also have an inheritance my dad received which he then gifted to me and was brought to the UK and signed under a DOV.
So I don't know whether recent large sums have alerted hmrc but it is nothing untoward on my part.

I certainly do not have offshore schemes or anything like that.

I answer yo tour question Does it have a certificate requiring you to certify that your tax returns are correct and that you have nothing to disclose? the answer is yes this is the letter I have received.
Do they send this out even if something is not necessarily wrong?

Jholm
Posts: 95
Joined: Mon Mar 11, 2019 4:22 pm

Re: letter about foreign income and gains

Postby Jholm » Thu Jul 25, 2019 3:54 pm

I have seen clients receive them when they have no overseas affairs whatsoever.

riccardob
Posts: 92
Joined: Sun May 29, 2011 10:02 am

Re: letter about foreign income and gains

Postby riccardob » Thu Jul 25, 2019 4:21 pm

I have seen clients receive them when they have no overseas affairs whatsoever.
did you advise your clients to respond to the letter?

I have seen articles on the web which state that there is no requirement for someonone to reply.
Personally I would rather play by the book and reply to their letter.

Jholm
Posts: 95
Joined: Mon Mar 11, 2019 4:22 pm

Re: letter about foreign income and gains

Postby Jholm » Thu Jul 25, 2019 4:43 pm

Told them not to. The letter we had said only to reply if there is anything to disclose. They were just casting their hook without being able to see below the surface.

riccardob
Posts: 92
Joined: Sun May 29, 2011 10:02 am

Re: letter about foreign income and gains

Postby riccardob » Thu Jul 25, 2019 9:18 pm

Told them not to. The letter we had said only to reply if there is anything to disclose. They were just casting their hook without being able to see below the surface.
this letter i have today states that i should also tell
them that i have no tax liabilities if this is the case.

can i just write a letter telling them that my info is on my tax returns?

I am assuming they have no right to insist in me filling this form
but could you let me know if my assumption is incorrect please.

Jholm
Posts: 95
Joined: Mon Mar 11, 2019 4:22 pm

Re: letter about foreign income and gains

Postby Jholm » Fri Jul 26, 2019 9:02 am

If that's what the letter asks then write back stating that the only overseas income/gains you have are as per your tax return.


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