UK Taxpayers Offshore Disclosure Facility

10 May 2007

HMRC has recently obtained information about holders of offshore accounts from a number of banks and has obtained similar details through the European Savings Directive.

There is nothing wrong with holding an offshore account as long as you pay any tax due on the money deposited in it, and on the interest from it. If you have done this you do not need to use the Offshore Disclosure Facility.

HMRC "want to encourage those with unpaid tax and duties to pay what they owe. Therefore, we are introducing the Offshore Disclosure Facility to help them get their tax affairs up to date."

The facility is open to those who hold or have held an offshore account, either directly or indirectly, that is in any way connected to a loss of UK tax and/or duty.

For a limited period you can come forward and make a full disclosure of all undeclared liabilities, not just those connected with an offshore account. You can make a personal disclosure or one on behalf of an other.

You must notify HMRC of your intention to make a disclosure by 22 June 2007 and you must then make your disclosure and pay all taxes, duties, interest and penalties by 26 November 2007.

After disclosure and payment HMRC will send you an acknowledgement and will let you know by the 30 April 2008 if your disclosure has been accepted.

At the end of the notification period, HMRC will target those with offshore bank accounts and undeclared tax liabilities who have chosen not to come forward to make a disclosure.

We recommend that those liable to UK taxation with offshore accounts contact their tax advisors prior to 22 June 2007.

Further information can be found on the HMRC website: www.hmrc.gov.uk

Source: HM Revenue & Customs