HMRC extends amnesty for offshore savers

by Gill Montia

Story link: HMRC extends amnesty for offshore savers

HM Revenue & Customs (HMRC) has extended its amnesty for offshore savers.

The “Disclosure Opportunity”, which allows savers to settle up any outstanding tax, plus interest, plus a penalty of 10% of tax owed, now ends on 4th January 2010.

According HMRC, the extension from the previous cut off date of 30th November will give banks additional time to contact customers with offshore savings accounts.

For those making a disclosure on paper, the Revenue expects to receive any unpaid tax by 31st January 2010 and for those revealing all online, the deadline is 12th March.

The first such amnesty took place 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.

HMRC warns tax evaders that they can face fines of up to 100% of the tax owed and also stand the risk of prosecution.