Britons who want to use the Liechtenstein Disclosure Facility (LDF) to settle tax liabilities on favourable terms will have to pay more money into a bank account in the tiny European principality and keep the account open for longer, reports Nick Huber.
Previously, there was no minimum amount for opening a bank account in Liechtenstein to qualify for the disclosure facility that allows Britons who come clean about money owed to pay a 10% penalty on undeclared tax liabilities - significantly lower than normal penalties.
But according to Smith & Williamson the rules for using the scheme have just been made tougher.
From 1 December, Britons who want to use the LDF will need to have a “meaningful connection” with Liechtenstein, Smith & Williamson says in a tax briefing. Details have yet to be finalised, but the new rules are likely to mean that Britons will need to pay at least £50,000 into their Liechtenstein bank account and keep it open for longer, said Sue Holmes, head of national tax investigations at Smith & Williamson.