HM Revenue and Customs have now confirmed that there will be a 10% penalty for UK taxpayers who voluntarily disclose unpaid tax on accounts held offshore.
A spokesman for HMRC said a 10% penalty on the outstanding tax owed, plus interest, for this the second amnesty will only apply to taxpayers who were not covered by the first amnesty in 2007 which targeted the five major retail banks – Barclays, HSBC, HBOS, Lloyds and RBS.
The spokesman said that those who had previously had an opportunity to come forward will be subject to a higher penalty.
Although we do not actually know when the new facility will apply it is certain that for those of you with offshore assets this is probably going to be your last chance to get things sorted in an advantageous way.
If the new disclosure opportunity runs along similar lines to the 2007 offshore disclosure facility, this reduced penalty will be available to all disclosures, not just those relating to offshore accounts. So what does this mean, simply put, taxpayers who have a disclosure to make are likely to face penalties much lower than those which they would otherwise face (the current (new) penalty regime: taxpayers who have deliberately concealed business takings or income either through the use of offshore accounts or other methods can expect a penalty of at least 50% and perhaps as much as 100%).
If you think the new disclosure opportunity may be relevant to you our advice would be to contact your tax adviser as soon as possible.
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New Disclosure Opportunity
1 year ago
Those individuals choosing to participate in the scheme will be expected to settle the tax owed, interest thereon and a reduced penalty by 31 March 2010. For these individuals there is a high chance HMRC will accept the figures and move on, so peace of mind for these individuals could be achieved by taking advantage of this opportunity. However, those individuals choosing not to avail themselves of the scheme risk detailed investigations and possible prosecution.
Jason Holden
1 year ago
Thanks for the contribution. Not much time to settle the tax owed to get the reduced penalty, I guess the sooner those concerned come clean the better, and as for those who are in this position not taking advantage, well ………..