Britons issued offshore account tax reminder

Brits who generate an income from overseas assets have been reminded that they may owe tax on their investments.

HM Revenue and Customs recently revealed that until March 12th 2010, it will impose a ten per cent fine on undeclared earnings held in offshore accounts, following this date a 30 per cent penalty will be levied on savings.

This may affect Britons who have made international money transfers to purchase investments abroad, such as holiday homes.

The move is expected to increase the number of people voluntarily coming forward to pay income tax on their overseas savings.

Stephen Timms, financial secretary to the Treasury, said: "Most offshore investors already pay the tax that the law requires and it is only fair that everyone respects the rules.

"I would urge anyone with offshore accounts holding untaxed income or gains to take advantage of this simple and straightforward scheme."

Meanwhile, property rental portal holidaylettings.co.uk recently reminded Britons who make money transfers to overseas holiday homes that they may be eligible for tax breaks.

Click here to make an International Money Transfer.

By Linsey Summers