ALTHOUGH the amnesty is aimed at about 3m people with offshore accounts, all taxpayers can benefit.

Mike Warburton of Grant Thornton said: “All those with second homes abroad, buy-to-lets, and even people who believe there may be errors with their onshore UK tax returns, should take advantage or risk hefty penalties later on.”

We answer your questions.

How long have I got? You have until Friday to register an intention with Revenue & Customs to declare any tax owed. You will still be penalised for failing to declare what you owe, but the maximum penalty will be capped at 10%. Normally fines can be up to 100%.

There is no penalty if the income or gains you have failed to declare are less than £2,500, but you still need to disclose them.

How do I make a declaration? The Revenue has set up a special disclosure facility for offshore bank account holders on its website, hmrc.gov.uk.

You cannot use this if you have undeclared income or gains from another source. Instead you should make a disclosure to your local tax office. As long as you make a disclosure and payment within the deadlines you can expect the reduced penalty.

Do I have to pay by Friday too? No, you must make full payment of the tax owed, plus interest and penalties, by November 26 or the penalty may increase.

If you don’t expect to have the money in time, you should call the Revenue on 0845 366 1202 as soon as possible.

Is my domicile status relevant? If you are a British resident but not domiciled here, you usually pay UK tax only on offshore income and gains you bring or transfer to Britain.

You normally take on the domicile of your father, called your domicile of origin. It is possible to acquire a new domicile of choice, if you have left Britain permanently.

However, even if you have a letter from the Revenue stating that you are nondomiciled, it is worth taking advice.

I always declare the tax I owe. Should I be worried? If you have declared the bank interest you earn through your self-assessment form and have paid any tax due you should be fine.

If you receive a letter from your bank about the amnesty you can ignore it, although it is worth double-checking that you haven’t made a mistake.

If you have unpaid tax for 2006-7, you still have time to declare it on the tax return due by January 31. You can also amend your return for 2005-6 until January 31.

If you haven’t paid tax in previous years you will have to take part in the amnesty. Seek professional advice quickly.

And what if I have an offshore bond? You can draw an income of 5% a year with no immediate tax to pay, though it is added to your gains when you cash in and the total is liable for tax.

What happens when the amnesty ends? The Revenue has vowed to “track people down” who don’t cooperate, threatening prosecution and a 100% penalty.