As the new tax year 2023-24 begins, UK residents are receiving a new wave of letters from HM Revenue & Customs (HMRC). These letters are part of a crackdown on offshore tax avoidance and are intended to encourage individuals to disclose any foreign income or capital gains that they may have failed to declare on their UK tax returns.
HMRC has recently sent out tens of thousands of warning letters to UK residents making money abroad. These letters are part of an effort to increase compliance with tax laws and ensure that individuals are paying their fair share of taxes.
If you are a UK resident and you have foreign income or capital gains, you must declare them on your UK tax return. This applies even if you never bring the income or gain into the UK. Penalties for failing to disclose foreign income can be severe, with fines of up to 200% of the unpaid tax.
In light of this new wave of letters from HMRC, it is important for UK residents to carefully review their tax affairs and ensure that they are fully compliant with all relevant tax laws. If you have any questions or concerns about your tax obligations, it is recommended that you consult with a tax professional for guidance.
Domenico Santomasi
