May 2007
It is a common misconception that interest from offshore bank accounts is not subject to UK tax.
HMRC have now received information from many banks about offshore accounts and to encourage taxpayers to declare their offshore income HMRC have announced what the newspapers are calling a ‘Tax Amnesty’.
The term amnesty is misleading as it only applies to the penalty that will be charged on undeclared tax relating to the offshore accounts, which HMRC have promised to cap at 10% if a voluntary disclosure is made before 22 June 2007. HMRC could in theory impose a 100% penalty. The tax and penalties due will need to be paid by 26 November 2007.
HMRC have advised that the penalty cap will also apply to tax relating to other undeclared UK income if a declaration and full payment of the tax due is made by the same dates.
The timescale for making use of this disclosure facility is short, so please do contact us as soon as possible if you have any concerns.
Internet Link: HMRC website
0121
355 1901
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