CH401291 - Charging penalties:introduction: offshore matters: requirement to correct: overview

The ‘Requirement to correct’ (RTC) legislation creates an obligation for anyone who has undeclared UK tax liabilities relating to:

• Income Tax
• Capital Gains Tax
• Inheritance Tax

that involves an offshore matter or transfer to disclose their relevant offshore tax non-compliance (see CH123100) to HMRC on or before 30 September 2018.

For detailed technical guidance on RTC see CH123000

The period by which the disclosure must be made can be extended by up to a maximum of 90 days. The extension can be:

• 90 days if the customer notifies HMRC of their intention to disclose before 30 September 2018 via the Worldwide Disclosure Facility (WDF)
• 60 days if the customer notifies HMRC of their intention to disclose before 30 September 2018 via the Contractual Disclosure Facility (CDF)
• 60 days if the customer is under enquiry and notifies us of their intention to disclose before 30 September 2108.

Where the notification is made by WDF the actual disclosure will be handled by campaigns and projects. Once the disclosure is made campaigns and projects will pass the information back to the caseworker.

If the person makes the correction by this date the tax and interest will be collected and existing penalty legislation will still apply e.g. Inaccuracy, failure to file.

Note. For RTC to apply the relevant offshore non-compliance has to have occurred before 6 April 2017 , see CH123150. Therefore barring any extreme or contrived scenarios, the latest tax year which will normally be within scope for the RTC will be 2015-2016, so the tax year 2016-2017 and later years are out of scope.