Offshore tax amnesty deadline draws close

by Gill Montia

Story link: Offshore tax amnesty deadline draws close

Savers with offshore accounts who have informed HM Revenue & Customs that they are taking advantage of its latest disclosure opportunity are reminded that they have until 12th March to settle-up online.

The deadline for those completing a disclosure on paper passed on 31st January and HMRC expects online participants in the amnesty to pay all outstanding tax, plus a 10% penalty, by Friday.

From then on, the penalty reverts to a maximum 100% of any unpaid tax.

The first such amnesty took place in 2007, when £450 million was raised by targeting offshore accounts provided by five major UK banks.

Around 45,000 people paid their dues but the outcome was generally thought to have been disappointing.

The largest single payment under the scheme was £3 million and the average, £9,000.

However, the Government has since asked for details of at least 100,000 offshore accounts held at over 300 financial institutions and in his pre-Budget report, Chancellor of the Exchequer Alistair Darling announced plans to raise the maximum penalty for tax-shy offshore savers to 200% of tax owed.