HMRC begins second ’tax amnesty’
HMRC announced last October that it would be conducting a second amnesty, allowing tens of thousands of taxpayers the opportunity to pay a reduced penalty for disclosing offshore bank accounts, by using their official ’offshore disclosure facility’.
The first 30 banks have now received letters asking for the details of customers who are believed to hold undeclared offshore funds.
The previous amnesty conducted by HMRC in 2007 targeted the five major UK high street banks, and penalties were capped at 10% of the outstanding tax owed plus interest.
In the second amnesty, it is expected that individuals who disclose their offshore income will face a penalty of 30% of the outstanding tax. Around 500 institutions are expected to be involved in the amnesty.
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Date: 26-03-2009