HMRC announced a new tax Offshore Disclosure Facility this month, which will run from 1 September 2009 to 12 March 2010.
The new facility provides an opportunity those who have any undeclared foreign income from foreign bank accounts to come forward and get their tax in order, subject to a 10% penalty.
What if you did not own up under the previous disclosure facility?
If you have an accounts with one of the following: Barclays, HBOS, HSBC, Lloyds or RBS and you did not make disclosure when asked to do so under the 2007 Offshore Disclosure Facility, your penalty will be 20%.
Does this cover on-shore income too?
No detail is given as to whether you will be allowed to disclose previously undisclosed income from UK sources under this new arrangement.
What about prosecution?
It is still possible to face prosecution under the NDO. If your client is found to have made an incomplete disclosure under the NDO or if he has previously been under investigation and signed a false statement of assets or certificate of disclosure.
Advisers can register (and submit disclosures) on behalf of their clients.
Dates and deadlines:
Registrations from 1 September (1 October for online registrations) until 30 November 2009. Disclosure submitted (with payment) by 12 March 2010 (by 31 January 2010 for paper disclosures).
Is that it?
HMRC have indicated that this will be the final opportunity for those with an offshore account to make a disclosure, but they have also given details of a separate deal with Liechtenstein.
Where do I read more?
Click here: HMRC New Disclosure Facility.