Dealing With HMRC Investigations Into Offshore Accounts

As from 2009, the Finance Act 2008 authorised HMRC to issue information notices requiring UK financial institutions to provide HMRC with certain information and documentation, within their power or possession, relating to account holders who have an address within the United Kingdom and who hold a non-United Kingdom account. A non-United Kingdom account is an account where the money or assets relevant to the account are held outside of England, Wales, Scotland and Northern Ireland.

Information held by offshore subsidiaries or branches

If a UK financial institution receives a notice and has a subsidiary or maintains a branch in the Channel Islands, its response to HMRC depends on the particular factual position applying to that institution. However, the UK financial institution should always keep in mind its duty of confidentiality owed to its customers and any data protection issues under local laws. The financial institutional should consider the following points