Offshore savings Updated:
Offshore investors who have yet to disclose their unpaid taxes have less than a week to do so, or run the risk of a heavy penalty and possible criminal proceedings.
HM Revenue & Customs' (HMRC) New Disclosure Opportunity (NDO) allows offshore investors to divulge their tax affairs without the fear of a criminal conviction, paying just a penalty of just ten per cent of taxes owed.
However, the window of opportunity is fast closing, as the NDO finishes on 4 January – less than a week's time.
"This is a great way to start the New Year, with the knowledge that your tax affairs are in order and the certainty that the penalty will be capped at ten per cent," said HMRC's Permanent Secretary for Tax, Dave Hartnett, last month.
The NDO has seen over 300 banks and financial institutions asked to hand over details of offshore clients. The sheer scale of the operation meant HMRC extended the deadline for investors to notify their intention of disclosure from 30 November to 4 January.
Investors have been warned that the NDO represents their last opportunity to get their offshore taxes in order, and the Government has signalled its intention to crack down on tax evaders once the NDO expires.
As part of measures to claw back £5 billion in unpaid tax every year, a new maximum penalty of 200 per cent of unpaid taxes was unveiled in this month's Pre-Budget Report.
HMRC said it was evidence of a 'new tough approach to penalties for offshore non-compliance.'
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.