HMRC to write to those with Swiss bank accounts

Individuals who regularly transfer money abroad to their Swiss bank accounts may soon find they are contacted by HM Revenue & Customs (HMRC).

The government body has revealed it plans to shortly begin writing to UK residents and organisations that have financial holdings in Geneva through HSBC.

HMRC explained that it is acting on information received last year under a tax treaty and will only be contacting those who have not yet come forward to declare they have overseas accounts.

So far, 500 individuals and organisations out of the 6,000 said to have savings in Geneva are being investigated by the body to check for criminal and serious fraud.

Others have voluntarily declared their tax liabilities under HMRC's Liechtenstein Disclosure Facility and people still have the opportunity to do this.

HMRC's permanent secretary for tax Dave Hartnett said: "This is not an amnesty. There are no special rates of penalty or interest for those who come forward voluntarily.

"This is an opportunity for those who have made errors in past returns to correct them."

Anyone found to be liable for prosecution could face penalties of up to 200 per cent, HMRC warned.

Mr Hartnett remarked: "The net is closing on offshore evaders. Don't wait for HMRC to contact you. Come forward to us and make a full disclosure."

The government's new Offshore Co-ordination Unit will assess those who have made overseas money transfers and aims to tackle tax evasion, avoidance and fraud.

In order to do so, HMRC has made £917 million available to fund the investigations.

The news comes after it was recently announced by the body that it has formed a partnership with Switzerland in order to ensure funds of British taxpayers held in the country will face a one-off deductions for past liabilities.

Posted by Sarah Pitton

Click here to find out how much you can save with HiFX's Foreign Exchange services.