Revenue and customs to probe offshore accounts

Date: 18th November 2008

Offshore taxation evasion is to be pursued by the government from next year as part of a major new operation, the Financial Times has disclosed.

The campaign will be led by HM Revenue and Customs (HMRC) and will scrutinise the customers of 25 foreign banks and building societies which operate in the UK.

Last year, HMRC pressured five high street lenders into revealing details of offshore accounts, resulting in the recovery of around £400 million in unpaid taxation.

In a memo sent to advisers this week, which the Financial Times published, HMRC said: "The intention of the new exercise will be to provide an opportunity for account holders to inform us of their own accord, if they have unpaid tax or duties and to settle their debts in a similar way to the original offshore disclosure facility."

Last week, research revealed that a large number of business start-ups would rather consult an accountant over their financial affairs than speak to a bank manager.