The taxman has promised that banks will not have to break secrecy laws when disclosing the details of offshore bank account holders.

At a meeting held yesterday HM Revenue & Customs told a group of banks that it intends to widen its search for offshore accounts beyond the giant banks Barclays, HSBC, HBOS, RBS and Lloyds TSB, but that the search would not require banks to breach secrecy rules.

HMRC is eager to avoid a confrontation with banks, and will be sending a questionnaire to senior bank officials asking them about the likelihood of having customers with undisclosed offshore accounts, and what their views are on how investigations should be conducted.

HMRC has acknowledged, however, that it may require further legal rulings if it is to obtain more customer details from banks, the FT reports.

Secrecy rules in places such as Switzerland, Belgium, Luxembourg and the Isle of Man mean that HMRC could struggle to obtain details of accounts held in these regions.

The first wave of the disclosure facility saw HMRC go to the special commissioners to obtain the details of 400,000 customers. Under the facility, which capped penalties at 10% for those who came forward, 62,000 account holders came forward.

About 15,000 account holders have already paid outstanding tax, netting £100m for HMRC.

Further reading:

HMRC prepares for more raids on offshore accounts

Offshore account tax disclosures reach 60,000