THE government is considering a second “amnesty” for British residents who hold money in offshore bank accounts, in an effort to raise more tax, writes Ali Hussain.

The news came as Revenue and Customs receives the final payments from the first offshore-disclosure facility earlier this year.

Under the amnesty, people with unpaid tax who came forward by June 22 have until November 26 to pay up. They faced penalties of 10% of the tax owed, compared with 100% under normal circumstances.

About 64,000 of the 100,000 targeted have come forward, with the remaining 36,000 now set to undergo formal investigation.

The taxman has recouped £140m so far, with payments expected to hit about £500m by the November 26 deadline.

John Cassidy of accountants PKF estimates that another 100,000 individuals may be targeted under the new amnesty, which would focus on smaller private banks and building societies. The first disclosure regime targeted people who bank with five of Britain’s top high-street banks, who sent letters to offshore clients telling them of the amnesty.

The second scheme was hinted at last week by the Revenue’s director general, Dave Hartnett, in a televised interview.

He said: “We will try to do something similar, on the principle that a repentant sinner coming forward is what we want.”

Tax experts have reservations. Cassidy said: “A second ‘amnesty’, as it was dubbed, will raise questions as to whether such once-in-a-lifetime opportunities are actually that, and may undermine future efforts to persuade tax evaders to come forward.”

He also suggests the requirement to disclose unpaid tax as far back as 20 years, as stipulated in the first amnesty, may have dissuaded many people from coming forward.