Offshore account holders urged to take up final ‘tax amnesty’

A North West based accountancy firm is urging people with undisclosed income from offshore accounts to come clean in a last-chance ‘tax amnesty’ to be introduced this autumn.

The New Disclosure Opportunity announced by the Chancellor in the Budget will encourage taxpayers with undisclosed income from an offshore account to own-up and suffer only a limited penalty.

Stephen Adams, associate tax principal at Moore and Smalley Chartered Accountants and Business Advisors, believes the initiative will help those who have fallen foul of the law by mistake or through a misunderstanding of the rules.

Stephen said: “We welcome this practical initiative from HM Revenue & Customs (HMRC). It gives people an opportunity to put their affairs in order with a much lower penalty than might otherwise be charged. In many cases, the penalty will be 10 per cent of the tax, together with the usual interest charges on tax paid late.”

The new initiative is expected to run from autumn 2009 to March 2010. It is not the first time that HMRC has offered this type of arrangement. In 2007, a similar scheme was launched and raised around £400 million.

However, HMRC says that it will not be running the scheme a third time. It also warns that it is seeking to obtain details of offshore accounts directly from financial institutions, and will take a tough line with people who do not come forward voluntarily.