Business And Leadership: UK to extend tax amnesty for offshore savers

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UK to extend tax amnesty for offshore savers

27.11.2009
The UK Government is set to extend the deadline on its tax amnesty for offshore savers in a bid to get more people to come forward voluntarily.

According to reports, HM Revenue & Customs will announce the extension later today.

The Times says the UK revenue office will give savers an extra five weeks to own up to any undisclosed offshore accounts they may hold.

This will push the date for disclosure out from 30 November 2009 to 4 January 2010.

HM Revenue & Customs currently offers a New Disclosure Opportunity (NDO) that is open to those who hold or have held an offshore account or asset, either directly or indirectly, that is in any way connected to a loss of UK tax and/or duty.

A fixed penalty applies to those who come forward under the NDO. However, in the cases of those who hold an offshore account but do not come forward, HM Revenue & Customs has said such people will be pursued, with the penalties in these cases up to 100pc of the tax due with criminal prosecution to follow in exceptional circumstances.

HM Revenue & Customs points out on its website that there is nothing wrong with holding an offshore account or owning an offshore asset, as long as individuals have paid any tax due on the capital invested and on any interest arising on the account or on any income received relating to the asset.