The first prosecutions resulting from disclosures by the 'big 5' high street banks of customer details to Revenue and Customs are expected next year.  It is unlikely the Revenue will stop there.  A recent FT article claims it is widely believed that the Revenue will seek to broaden its crackdown on offshore accounts, following a recent meeting with 170 banks, brokers and wealth managers.  This would mean investors with funds held in banks other than the 'big 5' may see their details handed to HMRC.

If you currently hold investments in offshore bank accounts you will need professional advice particularly in relation to disclosing the information to HMRC.  As the saying goes, 'it ain't what you do - it's the way that you do it.'  So what should you do in this situation?  In some ways the answer is easy, make the declaration to HMRC as soon as possible, but before doing so seek professional advice.

It could well be that your affairs are quite straight forward but equally what appears to be so may not actually be the case.  You may be able to speak to your own accountant (if you have one) but because of the complications of liaising with HMRC on this particular issue, it may be preferable to appoint specialists who have the experience on these matters.  Especially if your status is somewhat complex.  We can help you here.

If you decide to retain your offshore cash deposit accounts with the Banks indefinitely, then you will have to continually declare the interest earned.  You may feel this strategy is not tax efficient and see little point in keeping them.  You may even decide to close them and return the money to Bank/Building Society accounts in the United Kingdom.  The next question must be, is there a better way?  Not surprisingly the answer is....yes.

Since 1988 we have been advising clients on the subject of investment and associated tax planning.  Part of a client's portfolio could be to invest offshore but in strategies that are more tax efficient than investing directly in cash deposits of Banks.

As an example, if a client wants to invest wholly on cash deposits - we can access offshore cash funds where the gross rates care currently in the region of 5% to 6% per annum.  Some of these accounts are 'AAA' rated unlike 'UK' Banks which may only be 'A' rated.

Whilst offshore, these cash funds grow tax-free and based on current legislation are not part of the 'tax amnesty' procedure.  For further information on this tax effiecient opportunity, please visit the page on our website headed 'International Investment.'

As HMRC regularly state in the media - 'tax does not have to be taxing'.

We know - we already do it for our clients.  Click here for further tax amnesty enquiries