HMRC announced the facility on 5th September 2016 in advance of global agreement to share information between the relevant revenue authorities which comes into effect from 30.9.2018. This means that anyone with undeclared income or gains can make a settlement with HMRC and face a lower penalty than will be charged if HMRC obtain information after 30.9.2018. The penalty level that has applied in the past to other facilities has been 10% but it depends on where the offshore account is held as some countries carry a higher penalty. If disclosure is not made then the penalty level can be as high as 200% of the tax.
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