'Last chance tax amnesty' for UK offshore account holders

(07/08/09)

HM Revenue & Customs (HMRC) has released further details of its forthcoming 'tax amnesty', which offers taxpayers with undeclared income or gains from offshore accounts or assets a 'final opportunity' to make a full disclosure, in favourable circumstances.

Under the New Disclosure Opportunity (NDO), the penalty will be capped at 10% for those taxpayers who were not contacted by HMRC during the previous Offshore Disclosure Facility, in 2007. Those who were previously contacted will be subject to a 20% penalty.

Once the scheme has ended, HMRC will ‘vigorously pursue’ all outstanding liabilities. Those taxpayers who have failed to come forward and are subsequently found to have unpaid tax liabilities will face penalties of between 30% and 100%, and will run an increased risk of prosecution.

To take advantage of the NDO, a notification of the intention to disclose must be made to HMRC between 1 September and 30 November 2009. The NDO closes on 12 March 2010.

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