Building societies told to reveal offshore accounts

The Nationwide says it is responding to demands from HMRC to hand over information on UK customers with offshore accounts, reports The Times.

The news comes a week after HMRC secured an order demanding more than 308 institutions with business in the UK to surrender details of all offshore account holders.

It is believed tens of thousands of Brits and expats have offshore accounts, many of whom use former mutuals, including Alliance & Leicester and Bradford & Bingley International.

Nationwide initially warned it may not be able to comply with the order to disclose details of UK customers with offshore accounts.

"We do not believe our records enable us to identify those customers who live in the UK and have an offshore account," it said.

However, the Nationwide now says it is doing all it can to comply with HMRC's requirements and says it has been in "active discussion" with the tax man.

HMRC is considering applying for powers allowing it to take half of an individual's offshore wealth as punishment for evading tax, as is the case in America.

Currently, the revenue can only use levy penalties for up to 100% of the tax owed.

Dave Harnett, HMRC's permanent secretary for tax, says: "It could help [to mount a prosecution] to change the rules so that those with hidden offshore accounts face much larger penalties."

HMRC is also likely to target individuals who use offshore accounts to manage overseas properties, as it has warned rental income will be scrutinised.

 

Categories: Offshore Investment

Tags: Tax| Tax evasion| Hmrc