News and Events

On April 17 HMRC announced a tax disclosure amnesty that will enable most people with overseas accounts that are connected in any way with unpaid tax to “come clean” and suffer a penalty of only 10% of the tax at stake rather than the more usual penalty which can be as much 100% - interest will be payable as usual.

This move to encourage disclosure follows HMRC recently obtaining information on offshore accounts from a number of banks and through the European Savings Directive.

Under the terms of the amnesty, HMRC must be notified of the intention to disclose unpaid tax by 22 June 2007. Full disclosure and payment must be made no later than 26 November 2007. The payments will need to include the full tax, interest and penalties for up to the previous twenty years.

HMRC have also announced their intention to pursue those with undeclared liabilities who have decided not to make a disclosure once the notification period ends on 22 June 2007. Account holders could then face penalties of up to 100% of the tax owed.

It is anticipated that this new offshore tax amnesty might be made effective for onshore tax disclosures too.

Margaret Connolly, Tax Partner at Reeves & Neylan, explained: “This amnesty is a major incentive for people to come forward. We would urge anyone affected to take advantage of it and to seek professional advice before doing so.” Please contact the Tax Team at Reeves & Neylan on 01227 768231 for further information.