Manx Disclosure Facility (MDF)
The Manx Disclosure Facility starts on 6 April 2013 and runs until 30 September 2016. The disclosure facility can be utilised by UK taxpayers who have had a relevant connection with the Isle of Man at any time between 6 April 1999 and 31 December 2013.1 A relevant connection includes for example a bank account, life policy or the administration of a trust, company or other entity in the Isle of Man. Where there is not currently any connection with the Isle of Man a UK taxpayer can still benefit from the disclosure facility as long as an appropriate connection is made prior to 31 December 2013.
The disclosure facility will enable individuals to regularise their UK tax affairs with HM Revenue & Customs where there are potentially undeclared amounts and also it can be used to obtain certainty on historical matters where the UK tax position is unclear.
It is important to remember that offshore structuring can be an important wealth and asset management tool to provide asset protection and mitigate unnecessary and duplicated taxation. Where clients have been appropriately advised historically the disclosure facility will not be relevant and they should not be unduly worried about the proposed automatic exchange of information
under the agreement with the UK.
Where clients have potential tax issues it is important that these matters are dealt with now as the disclosure facility offers a relatively low cost solution and the move towards transparency and automatic exchange of information is global. Simply relocating assets to different jurisdictions is not a medium to long term solution.
SMP Accounting & Tax has assisted individuals who have made disclosures under the Offshore Disclosure Facility, the New Disclosure Opportunity and the Liechtenstein Disclosure Facility. We are fully aware of the sensitive nature of such disclosures and the stress that this can place on UK taxpayers particularly as in many cases the tax issues relate to historical structures set up by deceased parents or spouses.
Why use SMP Accounting & Tax to make a disclosure under the facility?
- UK qualified chartered accountants and chartered tax advisers who are based on the Isle of Man and who will deal with the submissions
- In house legal department to provide legal assistance in relation to any disclosure
- Previous experience of disclosure facilities
- Able to meet clients in Isle of Man, UK and elsewhere
- No costs in relation to initial discussions
- Fixed fee arrangements possible
- Able to provide comparisons with Liechtenstein Disclosure Facility