20 March 2013
Press ReleasesBritons with offshore accounts in Guernsey could find themselves much worse off under a deal to boost transparency between the Treasury and the crown dependency.
Stephen Barratt, private client director at accountants James Cowper Kreston comments: “Discussions have reached an advanced stage. Under the agreement, bank account and trust holders will have to report unpaid tax to the taxman by 2016 or pay penalties of up to 200%. After 2016, those who do not pay will also face the possibility of a criminal investigation. The deal will also require balances to be disclosed.”
“Non-doms, those who are resident but not domiciled in the UK, will be subject to lighter rules,” added Stephen. “Their names and addresses will be disclosed from 2016 onwards, as well as their interest or gains.”
The Guernsey arrangements follow hot on the tails of a bilateral agreement struck between the Treasury and Isle of Man.
Stephen explained: “The deal that was struck with the Manx authorities last month will see an automatic exchange of information on people who have bank accounts on the island. I now expect to see Jersey bow to pressure and follow suit – it will no doubt get much harder for people to bury their money offshore in future.”
Stephen continued: “Individuals with savings or investments who believe they owe tax would be well-advised to take advantage of the chance to get their past affairs in order and consult an accountant or tax adviser before making a voluntary declaration so that the total bill is minimised.”
The details of the arrangements with Guernsey are subject to the approval of the Channel Island's parliament.
Stephen Barratt, Director, James Cowper Kreston LLP, Tel +44 (0)1635 35255 or email
