Introduction
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.
We 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.
Scope of the Offshore Disclosure Facility
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.
The Offshore Disclosure Facility
What are the terms of this facility?
- Notify HMRC of the intention to make a disclosure by 22 June 2007.
- A fixed penalty of 10 per cent of the tax/duties you have underpaid.
- No penalty on disclosures of untaxed amounts totalling less than £2,500.
- Certainty of treatment throughout - You will know the rules and timetables in advance.
- Disclose with full payment of tax, duties, interest and penalties before 26 November 2007.
- A final decision from HMRC on whether or not your disclosure has been accepted as soon as possible and by 30 April 2008.
This facility is open to those who hold or have held, either directly or indirectly, an offshore account that is in any way connected to a loss of UK tax and/or duties. Offshore means anywhere outside the United Kingdom of Great Britain and Northern Ireland. Therefore offshore accounts include any held in the Channel Islands, the Isle of Man and the Republic of Ireland
What are the key dates?
Stage 1 22 June 2007
You must notify HMRC of your intention to make a disclosure by 22 June 2007. If you do so you will be able to use this facility
Stage 2 26 November 2007
Make your disclosure and pay all taxes, duties, interest and penalties by 26 November 2007
