Offshore Accounts in path of storm warns local accountant – June 2007
Patrick Lee FCA
Partner at Ashdown Hurrey, Patrick Lee, has sounded warning bells for offshore bank account holders. Following recent legal rulings, the Inland Revenue can now oblige banks and other offshore institutions to disclose the names and addresses of UK customers with savings in offshore accounts.
Patrick said:
“Whilst the information is designed to help the Revenue track down the well-heeled few who decide to hide their funds out of the taxman’s grasp, the very real effect has been that people with relatively low balances in foreign bank accounts are getting drawn into Inland Revenue enquiries.”
It is always disappointing when major employers choose to leave the town, but where this has occurred, it has tended to be due to relocations abroad rather than any perceived lack of ability or training amongst the local community.
If you have a villa or apartment, perhaps in Spain or Florida, details of even quite small interest payments on local accounts may lead the Revenue to conclude that there is a property being rented out. The Revenue has announced a disclosure facility to soften the blow for those with details to provide. Details can be found on their website but you must have notified your intention to disclose by 22 June 2007.
Patrick added:
“If anyone believes that some information may not have been correctly reported, it will be better if they bring it to the Revenue’s attention rather than waiting for them to ask. People shouldn’t be in any doubt, individuals are required to declare their worldwide income and if the Revenue is already aware of an overseas account, now is the time to get things sorted out.”
If you have any doubts or concerns, Ashdown Hurrey can advise you on how to make the necessary disclosure to minimise the impact.
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