The Liechtenstein Disclosure Facility (LDF) provides a framework to assist UK taxpayers with investments in Liechtenstein which have not been taxed to make a full disclosure to HMRC. The agreement allows penalties on unpaid tax to be capped at 10% of tax evaded over the last ten years. The LDF commenced on 1 September 2009 and will now run until 31 December 2015.

HMRC has recently published the latest statistics on the use of the scheme. The statistics confirm that since the LDF was launched more than 6,500 people and companies have registered to participate in the LDF; more than 6,000 disclosures have been received and the LDF has raised more than £1.16 billion from settled cases and payments on account.

The full eligibility criteria for the scheme are set out in detailed guidance but the special terms of the LDF include a 10% fixed penalty on underpaid liabilities (interest remains due in full), no penalty where an innocent error was made, assurances about criminal prosecution and a single point of contact for making a disclosure.

The circumstances for accessing the LDF were updated in August 2014 when the following three broad categories of restrictions were put in place:

• Cases where the relevant person enters the LDF to settle liabilities HMRC is already aware of
• Cases where the issue being disclosed has already been subject to an intervention that began more than three months before the date of application
• Cases where there is no substantial connection between the liabilities being disclosed and the offshore asset held by the relevant person on 1st September 2009.