Final offshore disclosure opportunity
Initial details of a new offshore disclosure opportunity have been announced. The announcement follows an ongoing consultation between HMRC and various professional bodies. The new disclosure opportunity is expected to begin in the autumn and continue through to March 2010.
This is expected to be the final disclosure opportunity for taxpayers to disclose arrangements without incurring significantly higher penalties.
Whilst the full details of this scheme have yet to be released a penalty of 10% is expected to be levied for full disclosure where no previous disclosure opportunity had been available to the taxpayer. A higher penalty will apply where a taxpayer could have taken advantage of an earlier disclosure opportunity.
Taxpayers who currently have undisclosed taxable income (for example in accounts in offshore banks) are advised to take action immediately. Going forward HMRC are likely to levy significantly higher penalties than those suggested as part of this scheme.