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 any future budget changes. However, HMRC has stated that for 2009/10 penalties will be 30% of the underpaid tax in cases of suspected serious fraud and 20% of the underpaid tax in other cases. Penalty levels for 2010/11 have not been formally announced.
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. HMRC has announced that no SCR will be available for 2009/10.
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.