Tens of thousands of UK residents with accounts held offshore are likely to be required to participate in this year’s tax amnesty to ward off the threat of prosecution and hefty fines, accountants predict. Those taking part in the HM Revenue and Customs’ amnesty have until the end of October to disclose the extent of their offshore income and gains and any unpaid liabilities must be settled by March 2010. EDITOR’S CHOICE Harbours of resentment – Dec-01.US turns screw on UBS in offshore tax haven crackdown – Nov-14.Forced to stand on its own three legs – Nov-12.Accord puts suspected tax evaders in spotlight – Oct-29.Risk-rewarding tax breaks are part of the problem – Oct-23.Berlin calls for Swiss to be on tax blacklist – Oct-22..“It’s a last-chance saloon for people who have not previously disclosed offshore income or gains to the Revenue,” said Christopher Oates of Ernst & Young. “If they don’t take the opportunity to make the disclosure, the Revenue will come down very hard on them. There will be no immunity from prosecution.” Penalties for unpaid tax will be set at 10 per cent for taxpayers who have never before received letters from the Revenue looking for settlements. Liabilities of less than £1,000 will not draw a charge. Penalties will rise to 20 per cent for those who avoided calls to disclose accounts during the Revenue’s 2007 tax amnesty. Thousands of undeclared offshore bank accounts are set to be prised open by the Revenue in pursuit of £500m in unpaid tax after a tribunal ruled that banks must hand over depositors’ details. The Revenue expects to raise £500m over the next four years by prompting holders of undisclosed accounts to come forward.