Liechtenstein Disclosure Facility

Until the end of 2015, the Liechtenstein Disclosure Facility (LDF) provided UK residents with undeclared tax liabilities a unique oppertunity to settle and regularise their tax affairs with HMRC on favourable terms. 

2016 UPDATE: The LDF and similar other voluntary disclosure schemes are now closed and has been replaced by the Worldwide Disclosure Facility (WDF) but will not offer favourable terms. Learn more about the Worldwide Disclosure Facility.

Benefits of the Liechtenstein Disclosure Facility:-

  • The LDF is not limited to taxpayers with accounts or assets in Liechtenstein. Provided a Liechtenstein connection is established (we can help set this up), the LDF can be used as an umbrella for the disclosure of any tax liability connected with any offshore asset, including:-
  • The maximum penalty is fixed at 10% of the outstanding tax plus interest
  • Tax, interest and penalty under the LDF may be much lower than the withholding tax arrangements under the UK-Switzerland agreement
  • HMRC will only look back to accounting periods or tax years commencing on or after 1 April 1999 and will not seek to recover unpaid tax from earlier periods
  • In cases of 'innocent error', liability to UK tax will be limited to include only the previous six tax years at the time of disclosure
  • HMRC will give assurances it will not pursue criminal prosecution
  • Beneficial for inherited assets that were not originally included in the deceased's estate

How we can help

The LDF is a complex area. Expert technical knowledge, careful negotiation and advice can often make a substantial difference to the eventual tax liability, penalty and charges.

Tax specialist Ian Leigh and ex-HMRC inspector Paul Williams and their team have over 100 years of combined experience in dealing with tax investigations and offshore tax disclosures and can offer cost-effective and flexible fee arrangements, including capped fee quotes.

Confidential advice - Contact us

For further information, or to arrange a free, confidential consultation, please telephone Ian Leigh on 0207 309 2222.

Liechtenstein Disclosure Facility Adviser