15 September 2009

The New Disclosure Opportunity  (NDO)

A new campaign has been launched by HMRC to encourage tax payers who have offshore bank accounts to make full disclosure of any interest they have not yet declared on their tax returns. This follows on from the initial campaign in 2007 which focused on the overseas operations of the main high street banks. This time, HMRC have contacted over 300 banks for details of accounts held by UK residents.

Tax payers have until 30 November 2009 to make a full disclosure to take advantage of the amnesty being offered by HMRC that will limit any related penalty to 10% of the tax underpaid. Anyone who fails to take advantage of the NDO and is "found out" at a later date will be deemed guilty of deliberately understating their tax and the penalty regime will be increased to a minimum of 70%.

You will also have to consider where the offshore funds came from and whether or not that also leads to additional tax liabilities previously undeclared.

We would urge any tax payer to take advantage of this disclosure opportunity, as soon as possible. Please get in touch with your usual Carters partner or contact to discuss this matter if you have any particular concerns. The time limit for making this disclosure is extremely tight especially if you have to await historic details from the banks.

Stephen A Taylor
Tax Partner