Additionally, some of the key aspects of the Liechtenstein Disclosure Facility (LDF) (the CRO and the guaranteed 10 percent penalty) are only available for the period 6 April 1999 to 5 April 2009. Thereafter, normal tax rules will apply including from 6 April 2010 an increase in the top rate of tax from 40 percent to 50 percent.
If a penalty is due for years after 5 April 2009 it will be charged in accordance with the law applicable at the time and may reflect future budget changes. However, the 2009/10 and 2010/11 penalties will be 30 percent of the underpaid tax in cases of suspected serious fraud and 20 percent of the underpaid tax in other cases. In addition, from 6 April 2011, the new offshore asset penalty regime will apply, so that penalties (as above) will increase to a multiple of 1.5 times for a category 2 country and will double for a category 3 country.
HMRC is considering whether a single charge rate (SCR) will be available as an alternative to the CRO for calculating liabilities under the LDF. HMRC will consider each tax year (to 2014/15) in isolation after the year has ended. If a SCR is made available HMRC will announce publicly the terms, procedures and rate of charge at the appropriate time. The single charge rate (SCR) is available for the 2010-11 tax year in 'limited terms', including a 50 percent charge, and only for those holding relevant property in Liechtenstein on 1 September 2009.
Those with undisclosed UK tax liabilities should consider making a LDF disclosure for all years up to and including 5 April 2009 now. Consideration will need to be given to years after 5 April 2009 as to whether to include them in the LDF or whether amending a Tax Return is still possible.