Hi one & all,
Can someone please clarify the new CRS [Common Reporting Standards] and worldwide income disclosure. We have got some clients who we have registered with HMRC for CRS. However next big question comes that how far do we have to go back to disclose the information for each client.
I have attended some webinars & in fact spoken to HMRC too but did not get answer to my question. Some of my clients got overseas rental income going back 25 years. Whereas some clients only got 3 or 6 years’ overseas income. Does anyone know when we disclose overseas income under CRS, how many years’ income are we supposed to disclose?
Replies (5)
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Do you mean that you have registered your clients for the worldwide disclosure facility?
You will know more than me if you have been on a course but a quick search shows that they will need to self-assess to determine how far to go back: there is a reasonable excuse (4years), they were careless (6 years) or if it was deliberate (20 years).
https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch56100
Why didn’t you use the Let Property Campaign for the rental income?
To add, I don’t know if you have been onto the form yet but you have to give the average offshore net assets for the last 5 years as a figure - so get your clients to start digging this out now since I have a form which I can’t submit since still waiting for the assets figure.
Common Reporting Standard is only applicable for Financial Institutions. This involves providing information about client accounts in certain situations so HMRC can onward forward to OECD countries.
The end account holder doesn't get a choice in this matter.