Cayman Islands-UK tax agreement
UK taxpayers with accounts in the Cayman Islands will be reported to HMRC automatically every year as part of a new agreement, the first to be signed with a British overseas territory.
The agreement follows similar arrangements the UK has made with the Isle of Man, Jersey and Guernsey. UK residents will have until September 2016 to disclose details and pay any tax owed, as well as a fine of between 10% and 20%. In most cases, evaders will escape prosecution, but this is not guaranteed.
Additional information including data relating to companies and trusts will be shared after 2016.
HMRC is writing to individuals it believes hold bank accounts in the Cayman Islands, to encourage them to come forward and disclose any previously undeclared income and capital gains for periods of up to 20 years. In order to limit liabilities, it may be advantageous to make any disclosures relating to the Cayman Islands under the Liechtenstein Disclosure Facility (LDF)