Requirement to correct – a practical update
Now that the requirement to correct deadline has passed, Lynnette Bober looks at what happens next.
The requirement to correct (RTC) is a statutory requirement for any person with undeclared UK tax from overseas income or assets to declare it to HMRC. It was enacted in s67 and Sch 18, Finance (No. 2) Act 2017.
The RTC covers income tax, capital gains tax and inheritance tax (IHT) and requires a person to correct anything which HMRC could lawfully assess as at 6 April 2017. The RTC legislation is aimed at individuals and trustees. Companies only come within it if one of these taxes accrues to the company in a fiduciary or representative capacity.