Offshore tax extension welcomed by CIOT

The Chartered Institute of Taxation (CIOT) has said that the decision to extend the deadline for the HM Revenue & Customs (HMRC) offshore tax amnesty represents a ’sensible and realistic move’.

UK taxpayers who have failed to make payments on their offshore savings and investments will now have until January 4th to make a disclosure, instead of the original deadline of November 30th.

Responding to the HMRC’s announcement on Friday (November 27th), chairman of the CIOT’s management of taxes sub-committee Gary Ashford said that the new date ’recognises the lack of time under the original deadlines’.

He added: ’The new deadline should work, even if it might mean an uncomfortable Christmas for some taxpayers.’

According to HMRC, the deadline was extended to give banks additional time to contact offshore account holders.

However, Ronnie Ludwig of accountancy firm Saffery Champness told the BBC that the decision indicates a low level of response to the HMRC campaign, which involved sending warning letters to 30,000 people earlier this month.

’People are simply not coming forward’, he said.
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