Govt extends Liechtenstein tax disclosure agreement

08/February/2012

The government has extended its tax agreement with Liechtenstein by another year.

The extension of the Liechtenstein Disclosure Facility (LDF) gives British taxpayers with money invested in the European principality one more year to come clean about the tax they owe.

Inked in 2009, the deal between UK and Liechtenstein governments allows taxpayers to settle their liabilities on favourable terms.

Due to strong demand, the offer has now been extended to April 2016.

HM Revenue & Customs (HMRC) said since the agreement was signed, more than 2,000 British taxpayers with money in Liechtenstein have come forward.

"This government is committed to ensuring that offshore income is properly taxed," said UK exchequer secretary David Gauke.

"This agreement takes that commitment forward by providing greater transparency and certainty to the taxpayers of both our countries about how their incomes and gains will be taxed."

The LDF has also been incorporated into a double taxation agreement to ensure taxpayers will not be taxed twice on their income.

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