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Tax on foreign & offshore assets: advice from the British Embassy in Paris

As part of the British government’s Requirement to Correct legislation, UK taxpayers abroad are being urged to ensure that all their foreign income and assets, where there might be tax to pay, have been declared to Her Majesty's Revenue and Customs (HMRC) before the end of September. Failure to do so properly may incur new and ‘substantially higher penalties’ from 1st October, when HMRC introduces tougher fines.

“The vast majority of people and businesses pay the right amount of tax,” writes the British Embassy in Paris in a communiqué made public in early JulyCopyright Anthony Delanoix. “However, many people may not realise that some straightforward actions, such as renting out a property or transferring income and assets from one country to another, could mean having to pay tax in the UK. This includes having income from or an asset in France (or anywhere else in the world). These must all be declared to HMRC.”

The legislation also applies to those who live abroad and pay tax outside the UK, but rent out their UK home whilst living in France or another country, for example. 

Information on how to inform HMRC via the Worldwide Disclosure Facility, such as how to register and payment deadlines, can be found on the government’s official website: www.gov.uk/guidance/worldwide-disclosure-facility-make-a-disclosure.