Offshore private banking affected by HMRC move

A new initiative affecting some private bank customers who have offshore holdings have been unveiled by HM Revenue & Customs (HMRC).

The tax authority has indicated that people who declare accounts that they have not previously disclosed will be obliged to pay a levy of ten per cent of total tax owed.

This New Disclosure Opportunity for offshore banking business is scheduled to begin towards the end of this year - and is set to run until March 2010.

Confirming the move, an HMRC spokesman told the BBC: ’They [the private bank customers and other offshore account holders] will only receive beneficial terms if they make a full disclosure and if that includes other non-offshore funds, then the terms of the new disclosure opportunity will apply to the other funds as well.’

HMRC’s last disclosure programme ran in 2007 and raised over £450 million.

Improving the regulatory framework in the offshore private banking sector was one of the stated aims of the G20 agreement, struck by world leaders at a London summit earlier this year.ADNFCR-2318-ID-19209742-ADNFCR