HMRC to let overseas investors off the hook?

News Article - 18 April 2007
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Investors with offshore accounts will have to disclose any income or gains which they previously had not revealed following announcements from HM Revenue & Customs (HMRC).

The tax office said that it has received various details of offshore accounts from a number of banks and additional information had been gathered through the European Savings Directive.

HMRC is introducing the Offshore Disclosure Facility to make investors bring their tax affairs up-to-date.

However, for a limited time, taxpayers will be able to disclose all their undeclared liabilities and have them accepted under the Offshore Disclosure Facility. Following this period, the tax authority will begin to target any undisclosed accounts.

"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," HMRC states.

"If you have done this you do not need to use the Offshore Disclosure Facility."

Despite the announcement, accountancy firm Grant Thornton recently said that it believes HMRC will claw back at least £5 billion from the undisclosed accounts, including interest charges.

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