HM Revenue & Customs are in discussions with banks and accountants to see if there are ways in which they could encourage people with offshore bank accounts or overseas property to declare what they own. One way is to offer amnesty, but the HM Revenue and Customs have not confirmed this.
Although the HM Revenue and Customs would like people to volunteer this information, and an amnesty might sway their decision, they are taking a tougher stance. Last year HM Revenue and Customs won a case against Barclays Bank, where it forced them to provide details of all of their customers with overseas accounts and properties. It was claimed that this decision would allow HM Revenue and Customs to reclaim unpaid taxes of around £1.5billion, just through Barclays customers alone.
Our view
Under the EU Savings Directive, banking information is now shared throughout Europe with tax authorities. There is no hiding place. The ruling for an offshore subsidiary i.e. outside the EU or UK of a UK banking group subsidiary is something of a watershed. Whether you like it or not, if you are trying to beat avoid paying tax it is against the law. There are many legitimate ways to reduce your tax bill or own property, you just have to take good financial and tax planning advice.