Will the Liechtenstein authorities notify HMRC of UK Accounts?

No, this has been said by some so-called experts apparently, but this is absolutely NOT correct. Should a UK tax payer not wish to use the LDF, the consequences are that latest 2015, or 18 months after being notified of the LDF conditions by the Liechtenstein bank/fiduciary or similar, the client will be requested to close the account held in either the bank account in Liechtenstein or by a trustee/fiduciary in Liechtenstein. However, no information will be given to the UK when he chooses to do so. The banking secrecy is still in force and there is no automatic information exchange. While some jurisdictions might benefit from such movements away from Liechtenstein it is difficult to say that there will be a big advantage in doing so. Almost every relevant jurisdiction has signed a TIEA with the UK and therefore the risk of being caught is still there. In many cases becoming tax compliant can have several advantages to the client and care should be taken in carefully exploring those. Inheritance problems for successors in title are a real consideration.

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