You are here: Home - Investing - Experienced Investor - News -

Tax warning for investors with overseas assets

Written by: Paloma Kubiak
Investors with overseas assets including property and investments are being urged to get their tax affairs in order or face a "nasty" fine when a new cross-border reporting standard is introduced next year.

The new data sharing standard called the automatic exchange of financial account information (AEI) comes into force from January 2017.

Almost 100 countries across the world have signed up to or are in the process of signing up to it. It requires countries to obtain financial information from their financial institutions’ clients and to automatically exchange that information annually with other jurisdictions.

Until now, private financial information wasn’t automatically exchanged between countries and information would need to be requested by one jurisdiction to another if any wrong-doing was suspected.

Andrew Oliver of advisory firm deVere Group said the new standard would not be a problem for “the overwhelming majority of people” who are most likely already compliant, but anyone with undeclared assets could face penalties.

The first AEI will relate to financial information from 1 January 2016.

As such, Oliver said anyone who has overseas assets and investments should “ensure that their tax affairs are in order and compliant sooner rather than later”.

“Failure to do so could mean that they face a nasty shock in the form of penalties from January next year,” he said.

“Ignorance of the new reporting standard will not be a valid excuse in the eyes of the tax authorities.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week