10,000 come clean on offshore bank accounts

Around 10,000 UK residents have taken advantage of a Government scheme to come clean about their offshore bank accounts, HM Revenue & Customs said today.

They submitted details on their accounts through the New Disclosure Opportunity (NDO), with 1,100 signing up to the scheme on Monday - the last day on which it was available.

HMRC said it would now use details on offshore accounts it is obtaining from 300 banks to investigate people it believes may have underpaid their tax who have not come forward.

Under the NDO people who make a full disclosure about money they hold offshore will have to repay all the tax they owe, as well as a penalty of 10 per cent.

But those who did not take advantage of the NDO and are found to have undisclosed tax liabilities will face penalties of between 30 per cent and 100 per cent of the amount they owe, as well as the risk of criminal prosecution.

HMRC can also name and shame people who owe more than £25,000 on its website.