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Requirement to Correct

The purpose of the Requirement to Correct (RTC) legislation is to compel those with undeclared offshore tax liabilities to disclose them to Her Majesty's Revenue and Customs on or before 30 September 2018.

RTC applies to people who pay tax in the UK and relates to Income Tax, Capital Gains Tax, Inheritance Tax and all tax liabilities – it is part of HMRC's crackdown on offshore tax evasion and non-compliance.

30 September 2018 was chosen as the final date for corrections as this is when more than 100 countries will exchange data on financial accounts under the Common Reporting Standard (CRS). This will significantly enhance HMRC's ability to detect offshore non-compliance.

Those who fail to comply will face significant financial penalties.

Anyone who owns or has an interest in assets held offshore or has had an offshore source of income or has moved income or the proceeds of capital gains offshore is potentially affected. Such assets may or may not be held within a company, trust or any other type of offshore entity or structure for them to be affected.

To read more about RTC please click here.