The Inland Revenue have announced that anyone with an offshore bank account will need to declare account details within the next two weeks, or face possible fines. Even though any accounts which are declared will be subject to the repayment of back taxes, there will be fines and other charges if the Inland Revenue need to investigate themselves.
The Revenue claim that they have details of up to 400,000 offshore bank accounts, and while they could take action themselves, they are giving the individuals concerned time to report the accounts themselves. Slowly but surely the UK have entered into a number of reciprocal agreements with former tax havens, resulting in a flow of information on UK residents using their services.
It appears that upwards of 6,000 people have already forwarded details of their offshore accounts to the Inland Revenue, resulting in fines and charges of Â£3 million being raised by the authorities. There has already been an instance of a businessman who declared an account holding in excess of £1 million!
All offshore account holders have until the 22 June to declare their offshore accounts, with a further deadline of 26 November for them to forward proposed back tax information to the Revenue. The fact that the authorities already have details on many overseas accounts should ensure that this current amnesty will prove more successful than prior offers.