Offshore Bank Account Tax Disclosure is commonly understood to be a grey area in HMRC’s handling of people with offshore bank accounting. In 2007 the government won an appeal from Barclay’s Bank to stop HMRC accessing customer’s accounting. Many who held accounting in the Channel Islands and the Isle of Man began to panic about privacy rights.
HMRC state on their website: “There is nothing wrong with holding an offshore account as long as you pay any tax due on the money deposited in it, and on the interest from it.”
Offshore means outside the UK however so those locations and even the Republic of Ireland are not offshore if accounting are held there.
It would seem that offshore bank account tax disclosure is something that many people with accounting held oversees need to get to grips with to avoid confusion. Accountants with experience in this area are the best way to resolve your problem which is usually best handled by making a disclosure to avoid HMRC asking you for a back payment for interest earned on offshore accounting.
We have looked around and found a lot of help and resources on offshore banking – we suggest you type offshore bank account tax disclosure into Google – so it is a good idea to brush up on your knowledge and ask for help if you hold or manage offshore bank accounting.