Who is caught?

“Specified Relevant Persons” who have provided “offshore advice or services” to any of their clients in the course of business in the year to 30 September 2016. This can include a Chartered Accountant where the definitions in the Regulations are satisfied. Financial Institutions can also be a Specified Relevant Person.

What advice is covered?

“Offshore advice or services” is advice which relates to certain offshore sources of self-employment, employment, savings and investment income, and miscellaneous income. Offshore advice or services is not counted if the adviser only completes and submits a tax return that reflects the fact that the client has overseas income or assets.

Which offshore jurisdictions are caught?

Participating jurisdictions and the USA.

What must be done and by when?

A notification letter must be sent by the Specified Relevant Person to the client to whom they provided the advice. The letter must be sent by 31 August 2017. The Regulations are very specific on the format of the letter and its enclosure. More information is provided on this later.

What are the sanctions for failure to comply?

A Specified Relevant Person who fails to notify their specified clients faces being charged a penalty of £3,000. If the 31 August 2017 deadline is not met, a £3,000 penalty may be due, subject to appeal. This is a flat rate penalty per Specified Relevant Person and is not charged per client not notified.