CH123150 - Offshore matters: requirement to correct certain offshore tax non-compliance: type of non-compliance and dates of offence
You must check the date from which these rules apply for the tax or duty you are dealing with. See CH123050 for full details.
The RTC only applies if the non-compliance was committed before 6 April 2017.
When non-compliance was committed depends on the nature of the failure or inaccuracy.
If the person fails to correct the position on or before 30 September 2018, then FTC penalties will apply.
Failing to notify
Under Section 7 TMA 1970 a person who has not been issued with a return by HMRC is obliged to notify us if they have a liability to Income Tax or Capital Gains Tax. This notification should be made no later than 5 October after the end of the relevant tax year. Failing to notify chargeability occurred before 6 April 2017 if the notification should have been made on or before 5 April 2017.
Anyone who has failed to notify chargeability involving offshore matters or transfers for any year up to and including 2015 to 2016 will have failed to do so on or before 5 April 2017.
For further guidance on failure to notify under Section 7 TMA 1970, see EM4550+.
For guidance on failure to notify for Inheritance Tax, see IHTM10803.
For guidance on failure to notify penalties, see CH70000.
Failing to make a return or deliver another document
The date of failure is the day after the final day on which the return should have been delivered to HMRC, see CH61160.
For guidance about penalties for failure to file, see CH60000.
Submitting a return or document containing an inaccuracy
The date of the offence is the date that the inaccurate return or document is delivered to HMRC. If the inaccurate document or return is delivered to HMRC on or before 5 April 2017, the RTC rule will apply and the position must be corrected on or before 30 September 2018 or failure to correct (FTC) penalties will be due.
A full list of the returns or documents covered by the previous two categories are at paragraphs 8 (3) and (4) Sch 18 FA (No 2) 2017, see legislation.gov.uk.
It does not include PAYE returns.
For Income Tax and Capital Gains Tax it will usually be the case that any offshore tax non-compliance for the years 2015-16 or earlier will have been committed on or before 5 April 2017. The most obvious exception to this is if a person notifies their chargeability to tax on time for a year prior to 2016-17 but any return subsequently issued by HMRC was not due to be delivered until after 5 April 2017.
For examples see the Gov.UK guidance on Requirement to correct.