Offshore cash targeted in new government campaign

The Treasury and HM Revenue & Customs (HMRC) launched an ’offshore disclosure opportunity’ this week as part of the Budget.

It is thought likely that the move could raise tens of millions of pounds, helping to boost government revenues.

The programme’s main aim is to improve the clarity of the tax system, by giving private banking clients and other high net worth individuals a chance to declare money held in offshore accounts and pay back tax on the interest earned on these holdings.

A similar campaign was successfully launched in 2007, during which around 45,000 people paid a total of £450 million.

In a statement, the Treasury said that the measures - scheduled to run until next March - would ’protect the tax system from abuse and ensure that all individuals and businesses pay their fair share of tax’.
Speaking to the BBC, Ronnie Ludwig at accountancy firm Saffery Champness added: ’This [disclosure opportunity] is in line with the coordinated international approach being taken towards such bank accounts as outlined at the recent G20 summit meeting.’

Chancellor of the exchequer Alistair Darling announced earlier this week in his Budget speech that public debts would grow by £175 billion this year, as the credit crunch and financial downturn damages government revenues.ADNFCR-2318-ID-19138288-ADNFCR