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Govt announces new measures to combat tax evasion

Additional measures have been announced by the Government to combat tax evasion, which will bring an additional £0.5bn tax each year and protect £4bn in revenues by 2012-2013.
Qualifying Recognised Overseas Pension Schemes QROPS pay capital and income to the pension holder gross (without any tax deducted) but unless you live in a country that does not tax income then an income tax liability may exist. Consult your tax adviser.
Much is made of the fact that after five years non UK residency a QROPS does not report income payments to HMRC in the UK. Bear in mind all QROPS jurisdictions have a double taxation agreement with the UK so HMRC can still ask for the information post five years and are likely to inform your country of residence especially if in Europe.
Chancellor Alistair Darling announced in the 2010 budget that the Government is ready to sign three new tax information exchange agreements with Dominica, Grenada and Belize.
Following the consultation launched in the pre-Budget report, the Government will legislate to ensure that those who fail to declare income and gains will face tougher penalties of up to 200 per cent of the tax due.
The UK has already signed an agreement with Liechtenstein, which Darling said will bring in around £1bn of extra revenue.
Darling said: "I am determined to continue our successful drive to prevent avoidance and evasion."


Maria Smith is an associated editor to the website www.gerardassociates.co.uk .She is writing on HMRC QROPS, QROPS Pensions,qualifying recognised overseas pension, hmrc qrops,qrops advice.The QROPS listed above can help you to avoid the most common reservations in UK Pension planning.