Who can benefit from theLiechtenstein Disclosure Facility?

Any person who is a UK resident for tax purposes and who, on 1 September 2009 or thereafter, has a beneficial interest in relevant property in Liechtenstein is eligible to participate in the LDF. It is possible to transfer undisclosed overseas assets to Liechtenstein at any time between 2 September 2009 and 31 March 2015.

The terms “beneficial interest” and “relevant property” are precisely defined in a Memorandum of Understanding (MOU) concluded between the Government of Liechtenstein and Her Majesty’s Revenue & Customs (HMRC). As an overview, the following persons may participate:

• The holder or beneficial owner of a bank or financial (portfolio) account in Liechtenstein; or

• the founder, settlor, beneficiary or stakeholder of a company, partnership, foundation (“Stiftung”), establishment (“Anstalt”), trust, trust enterprise or other fiduciary entity, estate or insurance policy that is issued, formed, founded, settled, incorporated, administered or managed in Liechtenstein. Therefore, the beneficiary of a Panamanian foundation or a Jersey trust and the owner of a BVI company are also eligible to participate in the LDF provided the foundation, trust or company is managed in Liechtenstein.

Both existing and new clients with assets or interests in Liechtenstein and undeclared UK tax liabilities can use the LDF. In view of the advantages of the LDF it can be attractive for UK residents to transfer undeclared assets held offshore to Liechtenstein in order to become eligible for disclosure under the LDF. This can be done, for instance, by opening a Liechtenstein bank account, by establishing a Liechtenstein trust, foundation or other legal entity or by transferring the management of a foreign structure to Liechtenstein.

Disclaimer:

The above is a summary of the LDF and the information available from HMRC and the Government of Liechtenstein as at 10 December 2009 and constitutes no legal advice. If you are a person who is liable to UK taxation or who is resident for tax purposes in the UK, or if you think that you may be liable to UK taxation, we strongly recommend that you seek UK tax advice from a specialised UK tax advisor. We will be happy to assist you in the selection of an expert through our network.