HMRC grants amnesty to offshore account holders

by Gill Montia

Story link: HMRC grants amnesty to offshore account holders

Britons with offshore savings accounts are being given another opportunity to come clean with HM Revenue & Customs (HMRC).

The Revenue has announced the launch of a second amnesty that allows savers to settle up any outstanding tax on interest, plus a penalty of 10%, if they come forward between September 2009 and March of 2010.

The first such amnesty, known as a Disclosure Opportunity, was undertaken in 2007, when £450 million was raised by targeting offshore accounts provided by High Street 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 was £9,000.

Tax evaders have been warned that they will be pursued by HMRC and that the threat should be taken seriously as the Revenue will be issuing notices to financial institutions requiring information about offshore accounts.

Those who evade tax face penalties of up to 100% of the amount owed and are also under threat of prosecution.