HM Revenue and Customs has confirmed there will be a 10% penalty for UK taxpayers who voluntarily disclose unpaid tax on accounts held offshore.

A spokesman for HMRC said that the 10% penalty on the outstanding tax owed, plus interest, for the second amnesty will only apply to taxpayers who were not covered by the first amnesty in 2007. This targeted the five major retail banks - Barclays, HSBC, HBOS, Lloyds and RBS.

The spokesman said that those who had previously had an opportunity to come forward will be subject to a higher penalty, but was unable to confirm what this is likely to be.

'This is the last chance for people with offshore assets to get things sorted in an advantageous way,' he said.

The spokesman said for all first-time disclosures, the penalty is strictly 10%, irrespective of the amount of undeclared funds.

'It's the behaviour we're interested in, not the amount of money,' he said.

Further Reading:

HMRC holds private talks with profession over tax amnesty

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