Liechtenstein Disclosure Facility Q&A

Our tax team answer questions on the Liechtenstein Disclosure Facility. This article was originally published in UK200Group Talking Tax (October 2012, Issue 88).


Q What is the Liechtenstein Disclosure Facility?
A The Liechtenstein Disclosure Facility (LDF) is an opportunity to
settle unpaid taxes linked to accounts or investments held in
Liechtenstein financial institutions.

Q Who is affected?
A Anyone who holds or has held (directly or indirectly)
investments or accounts in Liechtenstein which is associated in any
way to a loss of tax, NIC, VAT etc. in the UK.

Q What is wrong with holding investments or accounts in
A Absolutely nothing provided the monies therein originate from
non-taxable sources or taxed income and any income arising
thereon has been properly declared.

Q If you have an open enquiry can you participate in the
A Yes you can so long as the enquiry is not being undertaken via
Code of Practice 9 – cases involving suspected tax fraud.

Q What if I do not have an account in Liechtenstein?
A You can create new relevant property (a bank account, trust or
life assurance) in Liechtenstein to enable you to participate in the

Q What is HMRC looking for?
A The tax authorities are interested to ensure that UK
resident and domiciled individuals are declaring their worldwide
income or capital gains including bank interest arising on offshore
accounts as well as checking the source of the sums deposited.
In the case of UK resident non-domiciled individuals, they want to
ensure that any income or capital gains remitted to the UK has
been declared and taxed.

Q What are the key dates?
A 1 September 2009: date when registration for LDF opened.
5 April 2016: date by which disclosure must be made and duties
paid (the initial deadline was 31 March 2015).

Q What taxes are covered by the LDF?
Income Tax
Capital Gains Tax
Inheritance Tax
Corporation Tax
Pay As You Earn
National Insurance
Value Added Tax
and Other taxes administered by HMRC.

Q What is there to pay?
A Tax and interest will be due in respect of any undeclared
sums as well as a fixed penalty of 10% of the tax underpaid. Due
to the complexities of certain investments held in Liechtenstein,
(or structures holding investments) instead of computing the
strict amount of tax owed, individuals can elect to apply a special
composite rate of 40% to cover all taxes on an annual basis
without the benefit of relief or deduction.

Q For how many years does a disclosure need to be made?
A A disclosure under the LDF should relate to the period 6 April
1999 to 5 April 2009 and the period from 6 April 2009 to date, if

Q What is the process?
A Notification of an intention to make a disclosure under the
terms of the facility should be submitted to HMRC’s Specialist
Investigation office in Liverpool.

Q Are there any risks?
A Unlike the New Disclosure Opportunity (NDO) there is a
guarantee of immunity from prosecution for tax offences. Extreme
care must be taken to ensure that disclosures are accurate and

Q What if affected individuals choose not to disclose?
A Banks and trust companies in Liechtenstein will be audited
and accounts of customers who do not take up the offer will be



Sam Inkersole

In 2022, Sam won the Taxation’s Rising Star award at the Taxation Awards in and was named in the Accountancy Age 35 Under 35.

Jon Wedge

While Jon’s client work focuses on the financial services sector, he also oversees the firm’s assurance service, as well as supporting the trainees following in his footsteps.


Elana joined us in 2017 as an ACA trainee, after graduating from Durham University where she had studied languages. She is now a manager in our assurance team.


By submitting this form, the data provided will be used to perform your request according to our privacy policy.