'Offshore' tax evasion threat

It is expected the Revenue and Customs will ask approximately 170 stockbrokers and wealth management firms to co-operate by disclosing offshore account details.

“By asking private banks to disclose offshore account details, the HMRC is widening its net further still, indicating that it is leaving no stone unturned,” says Phil Espin of Grant Thornton in Sheffield.

“As with the previous banking information, there will be a large number of relatively small investors who have not disclosed and who the Revenue will deal with by charging penalties, at a higher rate than the 10 per cent which they offered during the amnesty earlier this year.

“However, there will also be a number of significant cases where the revenue will mount criminal prosecutions or serious tax investigations as a warning to others. Next year could be very interesting.”

Grant Thornton says only 60,000 of the 400,000 people originally identified as potential targets by the revenue have taken advantage of the amnesty and disclosed details of their offshore assets – well under the revenue’s target.

Phil Espin warns those who decided to risk not coming clean about their assets in the amnesty could face fierce penalties, but he adds it is not too late to make a disclosure.

"If you have your affairs in order, you have nothing to worry about.

“The best advice I can give to people who have chosen not to take advantage of the amnesty is to pick up the phone now and speak to a financial adviser.

“Now is not the time to bury your head in the sand,” he warns.