Just over half (51 per cent) of high net worth individuals surveyed by the accountancy group BDO had heard of the Liechtenstein Disclosure Facility, which comes to an end on 31 March 2015, the firm said yesterday.

The LDF, a measure designed to eliminate tax evasion by UK citizens using bank accounts in the tiny principality, is not widely understood by some HNW individuals, the survey showed. Of the 19 per cent of citizens holding assets abroad, only 51 per cent had heard of the facility.

The research also found that of the 19 per cent of those surveyed with funds or assets overseas, 18 per cent held bank accounts or other investments in Liechtenstein itself.  However, just 10 per cent of these individuals had already participated in the LDF, with a further 30 per cent planning to do so.

From 1 December last year anyone with any investments or assets in any other offshore location was also able to participate in the LDF if they move some or all of those investments into Liechtenstein.  BDO’s survey found that even with this increased access to the benefits of the LDF, just 5 per cent of the high net worth individuals that were questioned said that they would definitely be interested in participating in the LDF with a further 10 per cent undecided.

Drawn up in 2009, the Liechtenstein Disclosure Facility was introduced by HM Revenue & Customs for UK taxpayers with existing and newly-acquired Liechtenstein assets or interests. Such taxpayers can generally disclose any unpaid UK taxes and pay them with interest and a 10 per cent penalty sum.

Importantly, the maximum look-back period is ten years (as opposed to the 20 years otherwise applicable) and other benefits are also available, such as the possible use of a "composite" rate. The composite rate option can provide substantial savings in a variety of circumstances including where multiple taxes would otherwise apply, such as both the inheritance and income tax. The composite rate permits a single rate of tax to apply, much simplifying the calculation and often significantly reducing the cost of voluntary disclosure.

Last December, the law firm Baker & Mackenzie praised the LDF as an example of a relatively well-judged facility. A number of governments in the west have, with varying levels of success, operated amnesties in recent years to recover revenues stashed abroad.