HMRC have recently won a case against Barclays Bank forcing it to disclose details of hundreds of thousands of offshore bank accounts as part of their crackdown against tax fraud. Estimates put the amount of potential tax that may be recovered at over £1.5billion. Whilst this ruling only affects customers of Barclays it is likely similar orders will be obtained against other banks in the future. In addition a stockbroker has been forced to give HMRC access to the private details of 33 clients following another legal ruling. The amount of disclosure is only going to increase and there are approximately three million UK taxpayers with offshore bank accounts.

Offshore accounts pay interest tax free. However, the income received by UK residents is still taxable and should be disclosed on their self-assessment return for the tax to be paid. It does not matter whether the interest is remitted to the UK or not.

The disclosure may not just affect untaxed interest. Many dishonest and badly advised individuals who have also been using offshore accounts to evade tax on trading profits may now be far closer to being caught and won't sleep quite as well at night.

If caught, as well as paying the tax plus interest, there are tax geared penalties that can amount to 100% of the tax due. Voluntary disclosure before being caught can significantly reduce the penalties charged. We can provide assistance to anyone needing advice on approaching the Revenue with details of any previously undeclared income of any kind.

NEXT STEP:
Please contact us if you have any queries on this news release or ask a question.