KPMG UK has warned offshore fund investors to check their tax reporting ahead of the 2018/19 tax return submission before HMRC does.

The firm highlighted how tax reporting for offshore fund investments is a complex area that wealth managers and tax advisers may have difficulties and because of this, HMRC is now paying extra attention to make sure it is reported correctly.

The consequences can be severe and will fall on the end investor, not the fund manager of their adviser. If an investor is found to have misreported, HMRC may be able to look as far back as the 2011/12 tax year and could potentially levee penalties of up to 200% of the tax owed.

KPMG UK tax director Iona Martin said: “Doing a tax return is hardly the highlight of anyone’s year but being faced with a hefty fine from HMRC would be even more of a lowlight. Offshore fund investing is a complex bit of the tax system and even if people have filed their reports the same way for years without any issues, it doesn’t mean they’ve been doing it correctly. HMRC is now on red alert and is using all powers available to it where taxpayers have been getting it wrong.

“If you invest via a fund or wealth manager, you’ll need to make sure you have ready access to the necessary information and there can be practical challenges, particularly if investing in a number of funds. So, any offshore fund investors would do well to just check with their advisor or manager ahead of submitting their returns this year. Anyone who waits for HMRC to tell them they’ve been getting it wrong will face a fine that’s potentially 50% higher than it would be otherwise.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.