Speculation has been rising within the UK’s wealth management industry that UK tax officials are to offer a second chance for offshore depositors to declare their assets.

During the first amnesty between 17 April and 22 June last year, the UK Government relaxed regulations in order to attract undeclared depositors to disclose their accounts. The offshore disclosure facility allowed depositors to disclose unpaid liabilities accumulated over the previous twenty years.

While the tax due was not waived, the penalty fine was capped at 10 per cent of its standard rate. The scheme generated £ 450 million with 44,000 participants.    

According to information received by UK accountants Baker Tilly, HM Revenue & Customs is considering reviving the programme following high quality information from jurisdictions such as Liechtenstein. Resource issues were said to be impeding HMRC from acting directly.

Some analysts are advising that it might be better for individuals to come forward now as if it is revived a new facility is unlikely to be as generous as the first one. If they declare themselves before the possible re-opening, they could hope to individually negotiate terms similar to the original offshore disclosure package.

A spokesman from HMRC confirmed to WealthBriefing that reviving the offshore disclosure facility was a possibility. However the proposal is at an early stage and discussions are ongoing with banks.

Tax evasion in offshore accounts remains a sensitive issue in the UK with HMRC known to be looking for high profile candidates to prosecute. Tax evaders who refuse to disclose their tax-liable offshore holdings face the possibility of criminal charges if caught.