UK- Liechtenstein Tax agreement
The Tax Information Exchange Agreement between the UK and Liechtenstein which was signed back in August 2009 came into force on 2 December 2010.
The new agreement allows for the exchange of information in line with the OECD’s model and international tax standards. The agreement will help ensure that the correct amount of tax is collected from taxpayers in both countries.
The UK also signed an agreement back in 2009 that encourages UK taxpayers with investments in Liechtenstein which have not been taxed to make a full disclosure to HMRC. This agreement known as Liechtenstein Disclosure Facility (LDF) 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 run until 31 March 2015. Both HMRC and the Liechtenstein authorities expect that by the end of the LDF all UK taxpayers with Liechtenstein investments will be fully tax compliant.